A Quiet Crisis: local government spending on disadvantage

Lloyds Bank Foundation have published new research undertaken by New Policy Institute which looks at local government spending on disadvantage across England since 2011/12.

Some of the key findings include:

  • Total local government spending on services supporting people facing disadvantage has fallen by 2% (compared to an 8% drop in total spending) but this masks great variation between services, and sits alongside rising demand we’ve been seeing for some time
  • There has been a big shift from preventive spend to crisis spend (with all the inevitable consequences on people and long term budgets)
  • Almost all of the reductions in spend on disadvantage have been in the most deprived local authorities which tend to have the highest demand for services.

The report concludes that without change, councils and people most at risk face a bleak future as those local authorities with the least ability to generate their own income are set to fall further behind.

It calls for an urgent debate to look at how local authorities can be funded to provide the services that are needed.

You can find all the key statistics in the summary, available from Lloyds Bank Foundation website.

You can read the full report on the NPI website.