Spring Statement: CCN responds

Today the Chancellor has delivered the government’s 2025 Spring Statement, which revealed that day to day spending will be reduced by £6.1bn by 2029-30 compared to what was originally planned in the Autumn Budget.

This will see departmental budgets grow on average by 1.2% in real terms each year, as opposed to growing 1.3% in real terms each year, which was originally set out in the Autumn Budget. Individual departments will find out their budgets in the June Spending Review.

Below, the County Councils Network responds to today’s announcements.

Cllr Tim Oliver, Chairman of the County Councils Network, said:

“Today’s Spring Statement indicates that departments such as the Ministry of Housing, Communities and Local Government face a reduction in anticipated funding over the course of this Parliament, compared to what the government set out in the Autumn Budget. This could have a substantial impact on the vital local services that people rely on. Councils have had to make very difficult decisions in setting their budgets this year, and would likely face for another four years of tough choices.

“For councils in county areas, they would face a double whammy as the government’s fair funding review, due to be completed this year, is likely to direct funding to urban and city areas at the expense of counties. This is despite county areas facing extreme demand-led pressures in adult social care, children’s services and home to school transport, alongside the additional costs of delivering services in rural places.

“If councils have a smaller pot of money than had previously been set out by this government, and funds are distributed away from county areas, it could push many well-run county and unitary councils to the brink, leaving them potentially unable to deliver little more than care services.

“Instead it is vital that the Spending Review invests in local services. With councils of all shapes and sizes facing a significant funding gap for the remainder of this Parliament, we must ensure that no council sees a loss in income as a result of the fair funding review. Within a tight fiscal environment, ministers have committed to reorganisation in all remaining two-tier council areas. Here, it is vital that proposals maximise the potential efficiency savings that can be achieved through the creation of new unitary councils, while minimising the costs and disruption to care services.”