In a letter to the chancellor ahead of the budget announcement, Green leader Paul Perkins said Waltham Forest has “lost out” compared to its neighbours, reports Sebastian Mann, Local Democracy Reporter
Waltham Forest Council’s leader Paul Perkins has urged the government to invest more in local authorities, as Labour unveils its Budget for the coming year.
The new budget will see millions of households given a £100 boost for their energy bills and bank tax rise, but no extra money for local councils.
Chancellor of the Exchequer John Healey said the government’s priority under Prime Minister Andy Burnham was cheaper energy, but Conservative leader Kemi Badenoch said the budget was “not bold enough”.
In a letter to the chancellor ahead of the budget announcement, Councillor Perkins said the town hall has “for many years been underfunded in the face of ever rising demand for services that support our most vulnerable residents”.
“These pressures now account for over three quarters of our core budget, a budget which is less in real terms than it was in 2011.”
The borough also struggles as it continues to “lose out” when compared to its neighbours, receiving £22m less than Hackney for public health, he said.
The town hall was forced to borrow £17million in ‘exceptional financial support’ (EFS) from the government in April, to cover a £16m black hole in its finances.
But Cllr Perkins said that Waltham Forest was “ultimately not a council that should be in EFS”.
“The reality is that EFS is no longer exceptional,” he said. “A system that was once set up to cater for local authorities facing extraordinary budget challenges is now the only resource available to structurally underfunded, well-run councils like us left with no other choice.”
Havering Council, now led by Reform, has borrowed just shy of £250m over the past three years due to intense housing and social care pressures.
Meanwhile, Labour-run Redbridge Council overspent by almost £29m last year, citing a similar struggle.
Eamonn O’Brien, chair of the Local Government Association, which represents councils across the UK, said: “Extra funding to tackle rough sleeping and for social housing is positive.
“However, no overall funding increase for local government means councils will continue to struggle to meet demand and provide services to our communities.
“The government recognises that councils are central to achieving good growth and rewiring the state. These ambitions cannot be achieved if council finances remain fragile and reliant on emergency bailout agreements.”
Meanwhile, small business owners in Waltham Forest positively reacted to the news that the government was raising the business rates relief threshold from £12,000 to £18,000.
Aceil Haddad, founder of Head to Ouna, a neighbourhood café in Chingford Green, told the Echo: “This is superb news. Starting your own business on the high street is incredibly tough. Funding is hard to secure, and from the moment you open, you face a tidal wave of costs while putting your own savings, time and energy into making it work.
“Raising the small business rates relief threshold will give more independent businesses much-needed breathing space and greater confidence to invest in their future.
“Shops and cafés like ours bring people together, create jobs and offer something a little special to their neighbourhoods. This is a welcome investment in the people who make our high streets worth visiting.”
Additional reporting by Marco Marcelline
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