Sir Keir Starmer has warned that Labour “can’t pretend that we can turn the taps on” to help struggling councils if he wins the next general election.

The Labour leader was speaking in Dudley at the launch of his party’s campaign for the local elections on 2 May, which are taking place against the backdrop of a bleak financial picture for councils across the country.

One in five council bosses have said they think it’s likely or fairly likely they will go bankrupt in the next 15 months, while the Local Government Association, which represents local authorities, has said there is a £4bn funding shortfall over the next two years.

Asked by Sky News’ political editor Beth Rigby whether he would “commit that money”, Sir Keir replied: “Councils of all political stripes are struggling with the lack of funding they’ve had over a prolonged period.

“And we need to turn that around – we will do that.”

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Although he did not promise additional funding, he did suggest funding settlement arrangements could be altered to help councils – suggesting one-year settlements had been detrimental to councils’ budgets.

“I think there is scope for different kinds of funding settlements,” he said.

“Talk to any council leader and they’ll say the one-year settlements are very difficult for us because we can’t spend money effectively and as well as we should.

“So it’s hard because there isn’t enough money. It’s even harder because it’s a one-year settlement. We can change that around with a three-year settlement.”

The shadow hanging over Labour policies is the dire state of public finances

Rob Powell

Political correspondent

@robpowellnews

While Sir Keir Starmer’s local election launch contained little new in the way of policy, it was still one of the clearest outlines of what drives the Labour leader as a politician and what would propel him in government.

Put simply – it is about restoring pride in the places people live and injecting a sense of integrity back into the workforces of those areas.

In a theme we’ll likely see returned to throughout the general election campaign, Sir Keir used the language of football to sketch this out – referring to the Potters of Stoke, the Glassboys of Stourbridge and the Hatters of Stockport.

Pride of place linked with the integrity of work given form through the plain-speaking language of football.

None of these identified problems are new.

This is the well of angst that lay behind the Brexit vote. This is the concept of ‘left behind’ communities Theresa May vowed to address. This is the problem to be solved through Boris Johnson’s ‘levelling up’ agenda.

So why should voters believe that this leader will prevail when so many others have failed? On this, there is still a considerable blank space. The answer being given today is devolution.

If local people are given more power over how to spend their money, this argument goes, they will spend it better and waste less.

The shadow hanging over all this is the dire state of the public finances. Or to put it another way, what many places need is cold hard cash.

The fiscal constraints Labour appears to be wrapping around itself means that money is not there though.  Squaring that circle will be the central tension within both this local election campaign and the coming race for Downing Street.

He added: “I can’t pretend that we can turn the taps on, pretend the damage hasn’t been done to the economy. It has. The way out of that is to grow our economy.”

At the end of last year, councils told residents they should be prepared for reduced services and tax rises due to increasing cost and demand pressures.

In Birmingham, where the Labour-run local authority declared bankruptcy after being hit with a £760m bill to settle equal pay claims, council tax will rise by 21% over the next two years while £300m in cuts will be brought in over the same period.

Read more:
Labour will not bail out bankrupt councils, Rachel Reeves says
Why are councils going bankrupt?

At the campaign launch, Sir Keir said it was “unforgivable” the Tories did not follow through on their pledge to level up left-behind areas of the UK and said he had hoped to launch “a different election campaign here today” but could not because the “prime minister bottled it”.

The Labour leader said Rishi Sunak wanted “one last drawn-out summer tour with his beloved helicopter” and added: “We need to send him another message, show his party once again that their time is up, the dithering must stop, the date must be set.”

Chancellor Jeremy Hunt claimed Labour’s local election launch was a “smokescreen” and that when it was in office the party “devolved no powers to local authorities”.