Cost of Living Crisis adds £3.6 billion in extra costs to council budgets

8 Jul 2022
LGA conference

New analysis by the Local Government Association reveals the huge pressure being put on local government budgets. Issues which have been neglected by the Conservative government such as rising energy prices and spiralling inflation are set to add £3.6 billion in extra unforeseen costs to council budgets across the country. The LGA has warned that these extra cost pressures pose a serious risk to the future of some services.

Portfolio Holder for Finance, Councillor Michael Headley said "The Conservatives' cost of living crisis is creating misery for so many people, and local government is not exempt from its impact. The longer this crisis is ignored by the government, the harder it will be for residents. This means that demand for council services will grow, just as the cost of providing them rises too.

"We need urgent action from the government or councils across the country will be forced in to cutting services in order to balance the books as the Local Government Association has identified."

Throughout the years of extreme Conservative government cuts to local government funding, Bedford Borough Council has remained one of the few councils to retain vital services such as libraries and children's centres. The Council has done this whilst keeping Council Tax rises low: the fourth lowest rise of all unitary councils since 2009.

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