Labour under pressure to fix local services in budget as councils insist there is no more ‘fat to cut’

Published

9 months ago

October 24, 2024

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Folkestone has been drawing in crowds in recent years with regeneration and private developments transforming parts of this port town on the Kent coast.

But many residents will tell you that the fabric of this community is being torn apart. Local services are deteriorating and have been for some time.

Leisure centres have shut down and Kent County Council recently closed most of its 50 youth clubs.

The local library has been closed for two years because it has fallen into disrepair and the local council says it can’t afford to repair it. Instead, a makeshift library has been set up across the road, in what was once a youth centre.

It’s not a unique story. Across the country, local authorities have seen their budgets slashed over the past decade.

Since 2010, central government has cut its grants, forcing local councils to raise more council tax. That hasn’t been enough to make up the shortfall, with total spending power plummeting by 26% over the past decade.

At the same time demand for core services, mainly adult social care, has soared, meaning councils are trying to deliver more for less.

Unsurprisingly, non-critical services have been the first to go.

Residents of Folkestone say they’ve had enough and expect the new Labour government to make good on its promise to fix their local services.

Matthew Jones, a local campaigner, said: “Libraries are not just a place where you borrow books. It’s the centre of a community… where people come, people who are not only unemployed but students too, a place where they can actually find somewhere warm and safe to study with people around them who can help them.”

Kent County Council had to make £90m of savings last year and is now looking to make another £85m.

Along with closing down services, the council is selling its headquarters, a listed building it has called home for more than 100 years because it can no longer afford to maintain it.

Peter Oakford, the council’s deputy leader, said there was no more “fat to cut”.

“We feel for the residents… because of the position we are in we are asking people to pay more for less services. Until the government fully fund social care so the council can fund other areas of non-discretionary business that we support residents with, we’re going to be in this same position.”

Local authorities, along with other unprotected budgets such as courts and prisons, have borne the brunt of cuts since 2010 as central government sought to prioritise funding for the NHS and schools.

The problems have reached breaking point at a number of local authorities and one in four councils in England say they are likely to have to apply for emergency government bailout agreements to stave off bankruptcy in the next two financial years, according to a new survey by the Local Government Association (LGA).

A separate report by the union Unison found that local authorities are grappling with a £4.3bn black hole in their budgets next year, which will rise to £8.5bn the following year.

The chancellor is under pressure to find extra money for local councils in her budget next week but she is grappling with spending demands across the public sector.

Rachel Reeves maintains that this type of day-to-day spending can only be covered through taxation, but the government has promised it will not raise income tax, national insurance or VAT.

This means the chancellor has a difficult balance to strike.

Politics

Another tantrum from the Labour backbenches is inevitable

Published

7 hours ago

July 6, 2025

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

In common with many parents across the country, here’s a conversation that I have with my young daughter on a semi-regular basis (bear with me, this will take on some political relevance eventually).

Me: “So it’s 15 minutes until your bedtime, you can either have a little bit of TV or do a jigsaw, not both.”

Daughter: “Ummmm, I want to watch TV.”

Me: “That’s fine, but it’s bed after that, you can’t do a jigsaw as well.”

Fast-forward 15 minutes.

Me: “Right, TV off now please, bedtime.”

(Pause)

Daughter: “I want to do a jigsaw.”

Now replace me with the government, the TV and jigsaw options with axing welfare cuts and scrapping the two-child cap, and my daughter with rebellious backbenchers.

Politics latest: Former Labour leader calls for wealth tax on assets above £10m

That is the tension currently present between Downing Street and Labour MPs. And my initial ultimatum is the messaging being pumped out from the government this weekend.

In essence: you’ve had your welfare U-turn, so there’s no money left for the two-child cap to go as well.

As an aside – and before my inbox fills with angry emails lambasting me for using such a crude metaphor for policies that fundamentally alter the lives of some of the most vulnerable in society – yes, I hear you, and that’s part of my point.

For many in Labour, this approach feels like the lives of their constituents are being used in a childish game of horse-trading.

So what can be done?

Well, the government could change the rules.

Altering the fiscal rules is – and will likely remain – an extremely unlikely solution. But as it happens, one of Labour’s proverbial grandparents has just popped round with a different suggestion.

A wealth tax, Lord Neil Kinnock says, is the necessary outcome of the economic restrictions the party has placed on itself.

Ever the Labour storyteller, Lord Kinnock believes this would allow the government to craft a more compelling narrative about whose side this administration is on.

That could be valuable, given one of the big gripes from many backbench critics is that they still don’t really understand what this prime minister stands for – and by extension, what all these “difficult decisions” are in aid of.

The downside is whether it will actually raise much money.

The super-rich may have lots of assets to take a slice from, but they also have expensive lawyers ready to find novel ways to keep their client’s cash away from the prying eyes of the state.

Or, of course, they could just leave – as many are doing already.

In the short term, the future is a bit easier to predict.

If Downing Street is indeed now saying there is no money to scrap the two-child cap (after heavy briefing in the opposite direction just weeks ago), an almighty tantrum from the backbenches is inevitable.

And as every parent knows, the more you give in, the harder it becomes to hold the line.

Politics

UK restores diplomatic ties with Syria

Published

13 hours ago

July 6, 2025

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The UK has re-established diplomatic ties with Syria, David Lammy has said, as he made the first visit to the country by a British minister for 14 years.

The foreign secretary visited Damascus and met with interim president Ahmed al Sharaa, also the leader of the rebel group Hayat Tahrir al-Sham (HTS), and foreign minister Asaad al Shaibani.

It marks the latest diplomatic move since Bashar al Assad’s regime was toppled by rebel groups led by HTS in December.

In a statement, Mr Lammy said a “stable Syria is in the UK’s interests” and added: “I’ve seen first-hand the remarkable progress Syrians have made in rebuilding their lives and their country.

“After over a decade of conflict, there is renewed hope for the Syrian people.

“The UK is re-establishing diplomatic relations because it is in our interests to support the new government to deliver their commitment to build a stable, more secure and prosperous future for all Syrians.”

The Foreign, Commonwealth and Development Office has also announced a £94.5m support package for urgent humanitarian aid and to support the country’s long-term recovery, after a number of British sanctions against the country were lifted in April.

While HTS is still classified as a proscribed terror group, Sir Keir Starmer said last year that it could be removed from the list.

The Syrian president’s office also said on Saturday that the president and Mr Lammy discussed co-operation, as well as the latest developments in the Middle East.

Since Assad fled Syria in December, a transitional government headed by Mr al Sharaa was announced in March and a number of western countries have restored ties.

In May, US President Donald Trump said the United States would lift long-standing sanctions on Syria and normalise relations during a speech at the US-Saudi investment conference.

He said he wanted to give the country “a chance at peace” and added: “There is a new government that will hopefully succeed.

“I say good luck, Syria. Show us something special.”

Politics

Secret Service seizes $400M in crypto, cold wallet among world’s largest

Published

15 hours ago

July 6, 2025

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Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service quietly amasses one of the world’s largest crypto cold wallets with $400 million seized, exposing scams through blockchain sleuthing and VPN missteps.