URL: https://moderngov.kingston.gov.uk/ieDecisionDetails.aspx?ID=5242

Decision Maker: Council

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: In accordance with Procedure Rule 8(A) (5), the Council debated the following motion which was submitted on behalf of the Liberal Democrat Group, as proposed by Councillor Andreas Kirsch and seconded by Councillor Richard Thorpe:   “Liberal Democrat Group Motion England’s Councils in Funding Crisis - Key Asks from the New Government    Proposed by: Cllr Andreas Kirsch  Seconded by: Cllr Richard Thorpe   This Council notes:          i.        councils across England are facing an unprecedented financial crisis. The Local Government Association's (LGA) analysis highlights a projected £2.3 billion funding gap for English councils in 2025/26, rising to £3.9 billion in 2026/27, and totalling £6.2 billion over two years;      ii.        the reason for this is that cost pressures on councils have increased, whilst Government funding has reduced, resulting in severe challenges in delivering essential services, especially to our most vulnerable residents;    iii.        despite over £132m in savings and efficiencies being delivered in Kingston since 2012/13, the forecast budget gap in Kingston for 25/26 is £9.24m;    iv.        an increase in the complexity of needs and rising placement costs has led to a 57 per cent rise in expenditure in children’s social care in Kingston since 2019/20;     v.        expenditure in adult social care in Kingston has increased by 34.9 per cent since 2019/20 due to rising demand, complexity and costs; and     vi.        an increase from £0.60M in 2019/20 to a forecast spend of £10.00M in 2024/25 in spend on homelessness in Kingston, driven by rising demand for temporary accommodation and the high costs associated with it.    This Council believes:          i.        while Kingston Council has made prudent financial decisions, the ongoing situation of reduced funding to serve more people with additional services that have become more expensive to deliver, is unsustainable;     ii.        the current funding model for local government is failing to keep pace with rising demand and costs;    iii.        the current system of council tax is regressive and fails to reflect the financial realities of many households; and      iv.        central government retains too much control over local councils and provides too little scope for local decision-making.    This Council resolves to:          i.        write to the Prime Minister, the Chancellor of the Exchequer, and the Secretary of State for Housing, Communities and Local Government setting out the key asks of central government detailed below, and urging immediate action to address the local government funding crisis:    o   Government to provide councils with a significant and sustained increase in overall funding that reflects current and future demands for services, along with multi-year finance settlements and an end to the wasteful and inefficient system of competitive bid funding.    o   Government to provide immediate funding to tackle the issues facing the care and support sector and in the longer term ensure sustainable funding for this sector.   o   The Government to implement a new funding settlement for social housing and more direct investment in the affordable homes programme to help tackle the capital’s housing crisis.    o   The Government to implement a flexible, multi-year funding settlement for homelessness prevention, delivered through local homelessness strategies and supported by a joint outcomes framework involving multiple agencies.    o   The Government to provide greater financial autonomy to local authorities through increased financial freedoms and devolved powers.    o   The Government to conduct a fundamental review of council tax alongside other council funding sources to seek a sector-wide, cross-party consensus on the future of council tax.        ii.        Continue to work with London Councils, the Local Government Association and other local authorities to encourage the Government to resolve the Council Funding Crisis.”   After some debate and on being put to the vote the motion was carried and it was RESOLVED that –     This Council notes:          i.        councils across England are facing an unprecedented financial crisis. The Local Government Association's (LGA) analysis highlights a projected £2.3 billion funding gap for English councils in 2025/26, rising to £3.9 billion in 2026/27, and totalling £6.2 billion over two years;      ii.        the reason for this is that cost pressures on councils have increased, whilst Government funding has reduced, resulting in severe challenges in delivering essential services, especially to our most vulnerable residents;    iii.        despite over £132m in savings and efficiencies being delivered in Kingston since 2012/13, the forecast budget gap in Kingston for 25/26 is £9.24m;    iv.        an increase in the complexity of needs and rising placement costs has led to a 57 per cent rise in expenditure in children’s social care in Kingston since 2019/20;     v.        expenditure in adult social care in Kingston has increased by 34.9 per cent since 2019/20 due to rising demand, complexity and costs; and     vi.        an increase from £0.60M in 2019/20 to a forecast spend of £10.00M in 2024/25 in spend on homelessness in Kingston, driven by rising demand for temporary accommodation and the high costs associated with it.    This Council believes:          i.        while Kingston Council has made prudent financial decisions, the ongoing situation of reduced funding to serve more people with additional services that have become more expensive to deliver, is unsustainable;     ii.        the current funding model for local government is failing to keep pace with rising demand and costs;    iii.        the current system of council tax is regressive and fails to reflect the financial realities of many households; and      iv.        central government retains too much control over local councils and provides too little scope for local decision-making.    This Council resolves to:          i.        write to the Prime Minister, the Chancellor of the Exchequer, and the Secretary of State for Housing, Communities and Local Government setting out the key asks of central government detailed below, and urging immediate action to address the local government funding crisis:    o   Government to provide councils with a significant and sustained increase in overall funding that reflects current and future demands for services, along with multi-year finance settlements and an end to the wasteful and inefficient system of competitive bid funding.    o   Government to provide immediate funding to tackle the issues facing the care and support sector and in the longer term ensure sustainable funding for this sector.   o   The Government to implement a new funding settlement for social housing and more direct investment in the affordable homes programme to help tackle the capital’s housing crisis.    o   The Government to implement a flexible, multi-year funding settlement for homelessness prevention, delivered through local homelessness strategies and supported by a joint outcomes framework involving multiple agencies.    o   The Government to provide greater financial autonomy to local authorities through increased financial freedoms and devolved powers.    o   The Government to conduct a fundamental review of council tax alongside other council funding sources to seek a sector-wide, cross-party consensus on the future of council tax.        ii.        Continue to work with London Councils, the Local Government Association and other local authorities to encourage the Government to resolve the Council Funding Crisis.   Voting:   For:                 Councillors Afy Afilaka, Sue Ansari, Lorraine Dunstone, Mark Beynon, Andrew Bolton, Emily Davey, Jackie Davies, Mark Durrant, Mariana Goncalves, Liz Green, Noel Hadjimichael, Patrick Hall, Roger Hayes, Lesley Heap, Lynn Henderson, Peter Herlinger, Alison Holt, Robert Dongsung Kim, Andreas Kirsch, Griseldis Kirsch, Ian Manders, James Manhel, Mike Massimi, Sharukh Mirza, Nicola Nardelli, Anne Owen, Elizabeth Park, Tom Reeve, Anita Schaper, Andrew Sillett, Susan Skipwith, John Sweeney, Thay Thayalan, Richard Thorpe, Olly Wehring, Diane White, Andrew Wooldridge and Yogan Yoganathan. (38)   Against:          None. (0)   Abstentions: Councillors Rowena Bass, Ian George, Kamala Kugan and Yvonne Tracey. (4)   Councillor Helen Grocott was not present for the vote on this item.

Date of Decision: December 12, 2024