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Chancellor risking 'fatal error' on growth, warns independent report

The Chancellor risks making the 'fatal error' of undermining the potential of local economies to drive economic growth if councils are made to bear the brunt of further cuts to public spending, warns a report by LSE Professor Tony Travers.

The warning comes as new figures reveal that cuts to the funding councils receive from government have already forced a reduction of between 16 and 44 per cent in councils’ spending on pro-growth services such as roads and transport, culture, housing and planning and development. These cuts sit alongside smaller, but still significant, reductions in the amount of money available for core services such as adult social care and child protection.

The figures, contained in an independent report for the Local Government Association by Professor Tony Travers, also show that since 2009-10, funding for local government has fallen by 15 per cent in real terms at the same time central government spending has risen. This is down to the fact that central spending on health, schools, international development and social security has been protected from spending cuts.

To read the full press release on the report by Tony Travers, director of the Greater London Group at LSE, click here|.

To read the full report, Local Government’s Role in Promoting Economic Growth: removing unnecessary barriers to success by Tony Travers, click here|

Ends

Monday 3 December 2012

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