Hollowed out: The impact of financial localisation on neighbourhood services

A new report by APSE and the New Policy Institute (NPI) considers the prospects for the ‘neighbourhood services’ provided by local government. Neighbourhood services are mainly those provided by local government apart from social care and education, that is: highways and transportation; environmental and regulatory service; cultural and related services; and planning and development.

Our last report showed that neighbourhood services had been the hardest hit of all local government services since 2010 with the most deprived areas, on average, hit the hardest.

The report, Hollowed out: the impact of financial localisation on neighbourhood services finds that:

• On average, spending on neighbourhood services in England fell by 17% in cash terms between
  2010/11 and 2016/17.
• Since 2010, council tax has represented an ever-growing share of Core Spending Power, up from 44% in 2010, to 54% by 2016/17 and 62% by 2019/20.
• By 2019/20, locally raised taxes will exceed CSP by £7bn – in effect, a ‘reverse’ subsidy, of central government by local government.
• Localisation will worsen already deeply adverse trends for some deprived unitary districts as well as some unfavourably located shire districts.
• The hollowing out of local government’s capacity, with financial cutbacks have now reached the frontline.

The full report is available to download for free. To purchase a hard copy, please complete the form below.

For further information, please contact Mo Baines at APSE on 0161 772 1810 or email  [email protected].

Download Research (pdf)