Local Government Funding Consultations
Funding for local government, and therefore the organisations councils commission, is a significant and ongoing challenge. Mounting evidence points to years of underfunding, increasing costs and rising demand. The 2024 Autumn Budget added to these cost pressures, with announced increases in the national living wage (NLW) and employee national insurance contributions (ENICs).
There are currently three major pieces of government engagement on the funding of local government. These are:
- The Local Government Committee inquiry on the funding and sustainability of local government finance
- The Ministry of Housing, Communities & Local Government Consultation on the approach to local authority funding review
- The Spending Review 2025 portal
VODG is seeking member input to help us respond to the above, to ensure the essential role of third sector providers is considered and the impact of funding decisions on frontline services and the people accessing support, is understood.
Using this document (downloads as a word doc) you will find a summary of each inquiry.
We ask members able to contribute, to focus in the first instance, on the below six questions. Your answers to these will be extremely helpul in informing our responses.
Questions to Members
- What are the most significant funding pressures your organisation is currently facing in delivering services through local authority contracts? Please provide specific examples and impact on service delivery.
- How has the current local government funding system affected your ability to:
- Plan services long-term
- Maintain service quality
- Meet increasing demand Please provide examples where possible.
- What specific changes to local authority funding mechanisms would most improve your ability to deliver sustainable, high-quality services? Consider aspects like:
- Payment mechanisms
- Contract terms
- Funding flexibility
- How have recent changes in service demand affected your costs and ability to deliver services? Please provide specific examples and data where possible.
- What evidence can you provide of the relationship between local authority funding constraints and:
- Service quality
- Innovation in service delivery
- Long-term sustainability of services
- How do current local authority procurement and commissioning practices impact your organisation's financial stability and service delivery? What changes would make the biggest difference?
Please email any evidence, ideas, key messages or commentary to [email protected] asap.