Councils in the North and East Midlands have been hit hardest by funding cuts, putting many authorities at ‘breaking point’.
Taking into account welfare reforms, the average council in the North East will lose £665 of funding per person by 2017/18 compared to a £305 loss felt by councils in the South East – according to a reportfrom the Special Interest Group of Municipal Authorities (SIGOMA).
This funding disparity means any economic recovery could ‘bypass’ sections of the UK, the group warned.
On average, councils in England are expected to have lost £487 per person by 2017/18 including welfare reform. Authorities in the West Midlands and Yorkshire and Humberside are expected to have lost £571, while Eastern town halls and London boroughs could see losses of £427 and £436 respectively.
Councillors have urged chancellor George Osborne to avoid worsening this situation with further cuts for 2014/15 when he presents his Autumn Statement.
Chair of SIGOMA and Leader of Barnsley Council, Sir Steve Houghton CBE, said : ‘SIGOMA’s report shows the Government’s complete disregard for the mounting pressure faced by certain councils and the pain it is causing their residents.
‘The Government must make fair funding a key priority to allow councils to provide essential services without the growing distraction of a service failure.’
Responding to the report, local government minister, Brandon Lewis, said: ‘This crude lobbying exercise is based on made-up extrapolations designed to scaremonger rather than inform public debate.
‘This year Newcastle has a spending power per household, which is £300 more than the national average and £700 more than Wokingham for example.’