Council funding – the recovery begins

This week marks the first local government finance settlement under your Labour government, and I am proud as Minister of State to begin the work of turning the tide on a decade of decline, giving councils the support they need.

For Oldham, this marks a significant change in fortunes. No new government can turn around 14 years in just six months, but we can change course, and show we are determined to make a difference so that local people can see and feel better local public services in their own community.

𝙁𝙪𝙣𝙙𝙞𝙣𝙜 𝙬𝙝𝙚𝙧𝙚 𝙞𝙩’𝙨 𝙣𝙚𝙚𝙙𝙚𝙙

This year, Oldham’s “Core Spending Power” will increase by £25.4 million or 9.5% on last year. This means the total funding available is worth £2,950 per household for local public services, including Council Tax.

Of this, £48.2 million is NEW grant funding for social care, including £2.2 million to invest in children’s social care preventative services.

Oldham will receive £2.9 million through a combination of other grants.

And like many other places which has been hit by rocketing demand, but a historically lower property value council tax base, Oldham will receive a £8 million Recovery Grant top up to help recover to financial strength. This is the first time this grant has been paid, and shows the change in direction to get funding where it is needed.

𝙅𝙪𝙨𝙩 𝙩𝙝𝙚 𝙨𝙩𝙖𝙧𝙩

This is the start of the recovery, not the end, and we will come forward with plans for greater financial security by giving councils the first multi-year funding settlement in over a decade, rather than year by year, hand to mouth allocations, and we will drive further devolution so more of what is allocated gets decided on locally, not in Whitehall.

I want to thank Oldham councillors for steering the borough through the past decade, often fighting alone to safeguard vital public services, but we’ve all seen the impact of rocketing demand for social care, children’s services and temporary accommodation hit hard, and the financial squeeze then reducing local neighbourhood services which make the borough and it’s towns a good place to live, the strain is clear.

I’ll do all I can to make the case for the value of decent, safe and clean places to the proud of, and to support the council to turn the tide.