‘The community stuff that makes us feel good doesn’t happen anymore’: Can councils survive spending cuts?
Nottingham Castle was built nearly 1,000 years ago, designed as an impregnable Norman fort.
Today it is a tourist attraction – but just as inaccessible.
The castle, owned by the council, has been closed since November, when its trust went into liquidation.
It is a symbol of a city and of a council that has struggled financially in the two years since it lost £38m on a failed company – Robin Hood Energy.
But it tells a bigger tale, of a local government system which is creaking – stripped of cash by Westminster and shaped by incentives and pressures that can lead councils to financial disaster.
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Just down the road from Nottingham Castle is a centre called Base 51 that works with vulnerable young people.
Its funding from Nottingham City Council has been completely cut so it’s launched a crowdfunding campaign. But as things stand, it will have to vacate its premises in six months.
Three teenagers were there when Sky News visited.
“Before I started coming here I was going out and getting into trouble,” Deyarni Beedy-Lamonte said.
“But since I’ve started coming here I’ve been offered counselling. And obviously that’s helped get me onto a better path.”
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Local councils explained
Quinn Vahey says there’s little else on offer for teenagers in Nottingham. “If I weren’t here, I’d be getting in trouble every day basically. I’d probably get arrested by now.”
Nottingham City Council told Sky News: “Like all councils, the City Council has been receiving less and less in government grants over the past 13 years to pay for local services, which has forced us to cut services that we would prefer not to.”
Not all councils have launched an energy company, though, and seen it go quite spectacularly bust.
But the council is right about government funding – grants from central government have fallen nearly 90% since 2014.
During roughly the same period, councils have cut back on discretionary spending.
Take roads, for instance – fixing things like potholes. Around £1bn was spent across all councils in 2013.
Today, that’s fallen to £690m, even after adjusting for inflation. Or street lighting, which has lost £100m in funding.
One of the most famous councillors in the country (not a crowded field) is Jackie Weaver.
She went viral after a chaotic Zoom meeting of a parish council, in which she was told: “You have no authority here Jackie Weaver. No authority at all.”
But Weaver is chief officer at Cheshire Association of Local Councils and knows the subject inside out.
“As money has got tighter over, I would say, the last 10 years, probably, we’ve seen the district and county councils in Cheshire disappear, the county council disappeared altogether, contract so much that now they only perform their statutory functions,” she told Sky News.
“Now, that means all the kind of community stuff that is visible, that makes us feel good, doesn’t happen anymore. They don’t have any money to do it. They only focus on statutory obligations.”
Statutory obligations are services that councils are legally obliged to provide and the most important, and the most expensive, is social care.
Councils are spending an ever greater share of their budgets on social care, as the population ages and care demands become more complex.
Total council spending has gone from £26bn 10 years ago to £30bn today, again adjusted for inflation.
If you look at social care as a proportion of councils’ total spending, you can see just how much it’s eating up – from 57% in 2012 to 62% last year.
Three councils – Nottinghamshire, Staffordshire and Halton in Cheshire – spent more than three quarters of their total 2021/22 budgets on providing social care.
So: add a massive cut in central government funding to a huge increase in demand for services councils are legally obliged to provide and spending cuts in other areas seem inevitable.
This isn’t just a tale of austerity, though, but a deliberate redesign, dating back to changes to the system made back in 2010.
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Who pays the most council tax?
“Councils were told to be innovative, entrepreneurial – to act like any other company, and this involved investments, property, other sorts of investments, maybe outside their own local authority area,” Jonathan Werran, CEO of thinktank Localis, told Sky News.
“But the reason they were doing this was to earn revenue to fund the local public services upon which people depend and rely upon – trying to plug the gap.”
That “entrepreneurial” model may have suited some councils – but it has led others, like Nottingham, into choppy financial waters.
Nottingham issued a Section 114 notice – a formal declaration of financial problems – in 2021.
But it’s far from the only one.
Thurrock, Slough and Kent have all issued Section 114 notices within the last year.
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Woking, which has racked up £2bn in debt investing in property, has said it is in danger of doing the same.
“There’s definitely more and more councils that are in challenging financial positions – a number of councils over the last five years or so particularly have borrowed quite heavily to fund investment in property,” Tim Oliver, chairman of the County Councils Network, told Sky News.
The person who changed the system was Lord Pickles, secretary of state for communities and local government in David Cameron’s coalition government, in 2010.
The idea behind the reforms was “essentially, to give [councils] more power and give them more say of how they spent things”, Lord Pickles told Sky News.
“And it’s called localism. And it really was designed to give power right down to the lowest level in local government.”
Sky News asked him about the councils that have issued Section 114 notices and whether it was a good idea to ask councils to be more entrepreneurial with public money.
“I want to say so, I think a lot of it boils down to a lack of due diligence,” he said.
“But the ones that we talk about, I think that there’s been a kind of a real problem when they’re sort of moved into this without properly thinking it through.”
Tom Cheshire speaks with teenagers in Nottingham
Every council Sky News spoke to said they need more money from central government.
A spokesperson for the Department for Levelling Up, Housing and Communities told Sky News: “We are making an additional £5.1bn available for councils in England in the next financial year.
“We are also providing multi-year certainty to local government, outlining spending over the next two years to allow councils to plan ahead with confidence.”
Sky News understands that around £2bn of that new money is intended for social care.
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See how much your council spends
But that represents just a 6.67% increase on the total amount spent by councils – at a time when inflation is significantly higher.
Councils will still struggle to afford social care, which means they will struggle to provide other services.
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And that may ultimately end up costing even more. Take Base 51 for example. As non-statutory spending, it can be cut.
But if those teenagers get into trouble and enter the social care or criminal justice system, that ends up costing more down the line.
“That’s the challenge we’re trying to work through now,” Mr Oliver told Sky News.
“You need to sort of double run it.
“So you need to have sufficient money to deliver the services to the people that are already in the system. But then equally you need to put funding and investment into prevention and early intervention.
“It is a false economy, not to invest in that early prevention. But that is the challenge around finding the funding to do both.”
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Labour demand council tax freeze
Local government can be an unglamorous subject but it has a huge impact on people’s lives: the fabric of our society is made up of many threads.
Many of them are small: street lights, bin collections, pot holes, community centres.
Some are huge, like social care.
And pick at those threads, year after year, and it adds up to the sense that the social fabric, the deal between citizens and state, is fraying.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
It’s like The Godfather, one reformed drug trafficker tells me.
The mythical gangster film centred on an organised crime dynasty locked in a transfer of power.
Communities in Scotland currently have a front row seat to a new war of violence, torture, and taunts as feuding drug lords and notorious families grapple for control of Glasgow and Edinburgh.
There have been more than a dozen brutal attacks over the past six weeks – ranging from fire bombings to attacks on children and gun violence.
A firebomb attack in Scotland
Victims left for dead, businesses up in flames
Gangsters have filmed themselves setting fire to buildings and homes connected to the associates and relatives of their bitter rivals.
The main aim, they boast, is to “exterminate” the opposition.
The taunting footage, accompanied by the song Keep On Running by The Spencer Davis Group, has been plastered over social media as part of a deliberate game of goading.
A 12-year-old boy and 72-year-old woman were left for dead when teenagers wearing balaclavas burst into a home in north Glasgow.
Garages and businesses have gone up in flames. Shots were fired at an Edinburgh house.
Signals are being sent of who wants control of Scotland’s dark criminal underworld.
A firebomb attack that saw a man throw an incendiary device through a building window
The fire attack set to the song Keep On Running by The Spencer Davis Group
What’s caused the gang war?
The former director of the Scottish Crime and Drug Enforcement Agency, Graeme Pearson, explains how a “vacuum of leadership” is playing a part.
Last October, Glasgow-based cocaine kingpin Jamie Stevenson, known as The Iceman, was jailed after orchestrating a £100m cocaine shipment stashed in banana boxes from South America.
The mob leader was one of Britain’s most wanted, running his business like another on-screen criminal enterprise: The Sopranos.
The 59-year-old fugitive went on the run before eventually being hunted and apprehended by police while out jogging in the Netherlands.
Jamie Stevenson. Pic: Police Scotland
Pic: Crown Office
‘Old scores to settle’
But paranoia was running rife about how this notorious gangster could be brought down. Was there a grass? Was it one of their own?
It further fuelled divisions and forced new alliances to be forged across Scotland’s organised criminal networks.
It wasn’t until The Iceman case came to court that it was revealed an encrypted messaging platform, known as EncroChat, had been infiltrated by law enforcement.
It ultimately led to Stevenson pleading guilty.
Ex-senior drug enforcement officer Mr Pearson told Sky News: “It is a complex picture because you have got people who are in prison who still want to have influence outside and look after what was their business.
“On the outside you’ve got wannabes who are coming forward, and they think this is an opportunity for them, and you have got others have old scores to settle that they could not settle when crime bosses were around.”
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Graeme Pearson
Mr Pearson describes a toxic mix swirling to create outbursts of violence unfolding in Scotland.
He concluded: “All that mixes together – and the greed for the money that comes from drugs, and from the kudos that comes from being a ‘main man’, and you end up with competition, violence, and the kind of incidents we have seen over the past four to six weeks.”
New wave of violence ‘barbaric’
Glasgow man Mark Dempster is a former addict, dealer, and drug smuggler who is now an author and respected counsellor helping people quit drinking and drugs.
He describes the “jostle for power” as not a new concept among Glasgow’s high profile gangland families.
Mark Dempster
“There is always going to be someone new who wants to control the markets. It is like The Godfather. There is no difference between Scotland, Albania, or India,” he said.
Mr Dempster suggests a shift in tactics in Glasgow and Edinburgh in recent weeks, with 12-year-olds being viciously attacked in the middle of the night.
“It is barbaric. When young people, children, get pulled into the cross fire. It takes it to a different level.
“At least with the old mafiosa they had an unwritten rule that no children, no other family members. You would deal directly with the main people that were your opposition.”
Police Scotland is racing to get control of the situation, but declined to speak to Sky News about its ongoing operation.
It has been suggested 100 officers are working on this case, with “arrests imminent”.
But this is at the very sharp end of sophisticated criminal empires where the police are not feared, there are fierce vendettas and, clearly, power is up for grabs.
UK
Laws may need to be bolstered to crack down on exploitation of child ‘influencers’, senior MP suggests
Laws may need to be strengthened to crack down on the exploitation of child “influencers”, a senior Labour MP has warned.
Chi Onwurah, chair of the science, technology and innovation committee, said parts of the Online Safety Act – passed in October 2023 – may already be “obsolete or inadequate”.
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Experts have raised concerns that there is a lack of provision in industry laws for children who earn money through brand collaborations on social media when compared to child actors and models.
This has led to some children advertising in their underwear on social media, one expert has claimed.
Those working in more traditional entertainment fields are safeguarded by performance laws, which strictly govern the hours a minor can work, the money they earn and who they are accompanied by.
The Child Influencer Project, which has curated the world’s first industry guidelines for the group, has warned of a “large gap in UK law” which is not sufficiently filled by new online safety legislation.
Official portrait of Chi Onwurah.
Pic: UK Parlimeant
The group’s research found that child influencers could be exposed to as many as 20 different risks of harm, including to dignity, identity, family life, education, and their health and safety.
Ms Onwurah told Sky News there needs to be a “much clearer understanding of the nature of child influencers ‘work’ and the legal and regulatory framework around it”.
She said: “The safety and welfare of children are at the heart of the Online Safety Act and rightly so.
“However, as we know in a number of areas the act may already be obsolete or inadequate due to the lack of foresight and rigour of the last government.”
Victoria Collins, the Liberal Democrat spokesperson for science, innovation and technology, agreed that regulations “need to keep pace with the times”, with child influencers on social media “protected in the same way” as child actors or models.
“Liberal Democrats would welcome steps to strengthen the Online Safety Act on this front,” she added.
‘Something has to be done’
MPs warned in 2022 that the government should “urgently address the gap in UK child labour and performance regulation that is leaving child influencers without protection”.
They asked for new laws on working hours and conditions, a mandate for the protection of the child’s earnings, a right to erasure and to bring child labour arrangements under the oversight of local authorities.
However, Dr Francis Rees, the principal investigator for the Child Influencer Project, told Sky News that even after the implementation of the Online Safety Act, “there’s still a lot wanting”.
“Something has to be done to make brands more aware of their own duty of care towards kids in this arena,” she said.
Dr Rees added that achieving performances from children on social media “can involve extremely coercive and disruptive practices”.
“We simply have to do more to protect these children who have very little say or understanding of what is really happening. Most are left without a voice and without a choice.”
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The researcher pointed to one particular instance, in which children were advertising an underwear brand on social media.
She said: “The kids in the company’s own marketing material or their own media campaigns are either pulling up the band of the underwear underneath their clothing, or they’re holding the underwear up while they’re fully clothed.
“But whenever you look at any of the sponsored content produced by families with children – mum, dad, and child are in their underwear.”
Dr Rees said it is “night and day” in terms of how companies are behaving when they have responsibility for the material, versus “the lack of responsibility once they hand it over to parents with kids”.
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