Local Government Association inflation analysis: CCN response

CCN Latest News, CCN News 2022 | 28 June 2022

Today the Local Government Association (LGA) has released new analysis on the impact of inflation on local government.

The LGA’s analysis reveals that energy prices, spiralling inflation, and National Living Wage pressures are set to add £3.6bn in unforeseen extra cost pressures on council budgets in 2024/25.

It follows CCN’s own analysis, released earlier in June, which warns that county leaders face a winter of ‘difficult decisions’, as a result of spiralling inflation and global price rises. CCN’s analysis, which was produced with the Society of County Treasurers, found that county authorities project they face £1.5bn in inflationary costs this year alone – at least.

Below, CCN responds to the LGA’s analysis.

Cllr Carl Les, County Councils Network Finance Spokesperson said:

“Today’s analysis from the Local Government Association (LGA) is another warning about the mounting concern local authorities have with soaring inflation costs.

“The County Councils Network has said that council leaders face a winter of difficult decisions, as they face £1.5bn worth of inflationary costs this year as of June, with this figure set to rise. Without funding to offset this crisis, councils could have to scale back construction projects or make in-year reductions to services.

“We support the LGA’s calls for extra financial support and we urge the government to provide more resources so councils can cope with spiralling prices in the Autumn Budget later this year.”