In response to the Chancellor's 2021 Budget and Spending Review, CIPFA CEO Rob Whiteman said:
"Today's spending plans mark a positive change in direction for investment in public services. We welcome the Chancellor's multi-year settlement, which will give some much needed certainty for the local government sector, as well as additional funding for transportation, infrastructure, homelessness, special needs education and support for families.
"Plans for a real increase in funding for all Whitehall departments, as well as a return of the government's overseas aid budget back to its target of 0.7% of GDP are also welcome. Much needed funding has also been allocated to address an array of service and performance backlogs, including those in the health and criminal justice systems identified in the recent CIPFA/IfG Performance Tracker.
"While the 6.6% increase in the National Living Wage is also welcome, the announcement means that local authorities will feel the burden of additional direct employment costs and prices paid to providers of social care services. However, the potential 3% increase in total spending power for local government will fund some but not all the additional costs pressures anticipated by the sector.
"While the devil is always in the detail, and there will surely be multiple claims on the funding packages announced today, the Chancellor's Budget and Spending Review moves us all a few steps in the right direction."
Notes to editor
The full local government finance and governance reviews can be found here.
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CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.