Analysis from the Local Government Association Lib Dem group:

This week saw the first Labour Budget since 2009. While there were a few positive steps, for much of the budget it was a case of ‘Meet the New Boss, same as the Old Boss.’

Local councils face increasing council tax, raising charges, and making further cuts to services in response to insufficient government funding.

Despite the announcement of an additional £1.3 billion in funding, it is at least £1 billion short of what the LGA has estimated is needed.

According to the LGA, councils across the UK need at least £2.3 billion next year just to maintain services at current levels.­ The government’s offer falls far short of what’s required, leaving councils in a perilous financial position.

There were some bright spots  – for example reform of the Right to Buy and some support for carers – something both the LGA and the Liberal Democrats have been calling for.

And while the £600 million extra for social care and the £500 million extra for pothole repairs are of course welcome, it is yet again the same trick used by the Tory Government. Central Government has thrown enough money at local government to stop the system collapsing completely, but nowhere near enough to solve the problem.

The extra money for social care could be eclipsed by the hike in Employer’s National Insurance Contributions as businesses such as care homes, which work with councils to provide care services, have to take account of the rise. Despite all the talk of change from the new government, austerity remains alive and well for local councils.

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