Funding: the interest continues

Further to yesterday's post, the financial pressures on local government remain in the spotlight, with two councils (Liverpool and Windsor & Maidenhead) warning that they might have to issue Section 114 notices (a brake on all but essential spending, triggered when a council hits financial crisis).

This evening, I gave a live interview to BBC South East Today on the issue. You can find the report here - it is the top news item (but will only be available to view for the next 24 hours). I reiterated my argument that central government's commitment of £3.2bn in two tranches of support for local authorities is very welcome, but does not address the full scale of the problem. For the present, cash flow is not a pressing problem for Kent authorities, because of the two funding tranches, the acceleration of payment of government grants for social care and the deferral of payment of business rates to the centre. However, the problem for the full financial year remains; for the combined total of Kent and Medway authorities, pressures (including anticipated shortfalls in council tax) come to around £370 million, while the support from government comes to some £99 million.

Ministers have said repeatedly that local authorities must do what it takes to meet the crisis and "we will back you." £3.2bn is a significant down payment on that pledge, but it must be delivered in full.