Autumn Statement: Plea made over councils' 'funding crisis'

The Leader of Bradford Council criticised the Chancellor for failing to mention the word 'children' during his statement – at a time when councils across the country are facing spiralling children’s services costs.

The Autumn Statement included some tax cuts, support for business and an increase in the minimum wage.

But there was little mention of support for councils or local social services.

Last month Bradford Council leader Susan Hinchliffe said the Autumn Statement would be a “big day for Bradford".

Bradford Council faces an overspend of £68m this financial year - £45m of which is in its children’s services department.

The authority had hoped the statement would include more support for councils.

After the statement was announced, Cllr Hinchcliffe said: “There is no growth in the economy, people are feeling worse off and in a cost-of-living crisis people need council services more than ever.

“Yet the Chancellor did not even mention the funding crisis faced by local council services and in particular he didn’t mention the word ‘children’ at all.

“There’s a huge gap in funding for vulnerable children’s services across the country including here in Bradford.

Councillor Susan Hinchcliffe (Image: newsquest)

“A coalition of children’s charities and councils wrote to the Chancellor before the Autumn Statement urging him to address the huge shortfall in funding for vulnerable children as costs are rising, child poverty is increasing and record numbers of children are being taken into care.

"Given the impact that austerity and the pandemic continue to have on children’s lives, it would be a false economy not to invest in their future.

“We now look ahead to the all-important local government finance settlement in the coming weeks as we join with other councils in calling on government to listen and work constructively with us to address these fundamental challenges the country faces.

"The sector is calling on government to urgently address this national crisis in funding to avoid more painful cuts to local services.”

Amanda Beresford, chair of West and North Yorkshire Chamber of Commerce, added: “It’s pleasing to see some of the measures announced in today’s statement. 

"Business needs assurance and support right now, in order to help grow the economy and create jobs; we’ve seen some of that, and that’s welcomed; but the pressures are still tough.

“The significant increase in the living wage, for example, means that the tax cuts for business announced are needed.

“Measures to potentially boost consumer spending and help some of our hard-hit sectors like hospitality – like the national insurance cut – are welcomed; as are things like planning reform and investing in innovation and green energy; but these things take time to work through, and time isn’t on the side of some of our small firms.

“We recognise that measures to increase investment in infrastructure and people is desirable – like the ‘full expensing’ measure and the new investment zones – but the level of uncertainty currently around might mean these also take some time to take effect.  Speeding up planning applications will be welcomed by some of our members in property and development, too.”

Mayor of West Yorkshire Tracy Brabin said: “The only way to raise living standards, end the cost-of-living crisis and cut taxes in the long-term, is by investing in the things that really matter – housing, education, health and transport.

“Local leaders stand ready to deliver on ambitious plans for their regions in a way that you cannot do from Whitehall.”

But Councillor Mike Pollard, Bradford Conservative Group spokesman for finance and projects, said: “

The Conservative Group on Bradford Council have welcomed the Chancellor’s Autumn statement. Councillor Mike Pollard, Conservative Group Spokesman for Finance & Projects said, “Obviously for most people the changes that jump out straight away are the two per cent reductions in National Insurance, which will benefit the average employee by in the region of £450 per year, the removal of Class Two National Insurance, which will benefit a self-employed trader nearly £200 per year and the increase in minimum wage, which will see the lowest earners paid an extra £1.02 per hour.

"These measures actually remove all workers from the bracket of “low paid”, which is a huge positive.

"The 8.5 per cent increase in the State Pension is also important when the cost of living, particularly gas, electricity and food costs have risen so sharply. The extra £900 per year will provide much welcome reassurance for very many people. People who have worked for many years and paid into the system deserve their fair share of the nation’s money.

"At the other end of the age range, I’m delighted to see that a commitment to working by people with young children is being supported. The fact that families who want to work to support themselves on the medium to long term have struggled to do so due to the cost of childcare and again, they deserve the essential support that they need, particularly mothers, whose careers could be stalled if they cannot afford to return to work.

"I’m expecting that the suggestion that “those who can work, should work” to result in howls of indignation from Labour politicians, claiming that the disabled and infirm are being targeted by nasty Tories, despite them knowing that this is simply not true.

"However, I am glad that the Government is targeting the workshy who try to disguise themselves among the vulnerable people who deserve society’s protection. It would not be so difficult to support those who need it, if everyone who can share the load did so and people will be assessed and supported to find work for many months, before a decision on their entitlement to benefits is made. I agree with the Chancellor that allowing those who can work but choose not to, to do so, is economically and morally wrong.

"On the economy side, I’m happy with the way that the tax reliefs and support have been targeted towards innovation and jobs for the future, coupled with encouraging the provision of the apprenticeships to train entrants to the job market to fill those jobs.

"The freezing of tax on booze is the icing on the cake in the run up to a Christmas after a few hard years for many people and I suspect that huge swathes of people will welcome this."