Local authorities' budgets are roughly 26% lower since 2010

Published: 29th Jun 2017

In brief

Claim

Local authority budgets have been cut by 40% since 2010.

Conclusion

This is roughly the reduction in the money English local authorities get from central government, since 2010. Overall, their budgets are 26% lower, because they also raise money locally.

“Local authorities… have had their budgets cut by 40% [since 2010].”

Jeremy Corbyn, 28 June 2017

Local councils in England have seen an average cut to their budgets of almost 26% since 2010, taking inflation into account, according to the Institute for Fiscal Studies.

The part of that that comes from central government—mainly through grants—has fallen by 38% over the same period, closer to Mr Corbyn’s figure. The final reduction is 26% because they also raise money locally, which didn’t fall by as much.

Labour told us that the 40% figure quoted by Jeremy Corbyn comes from a 2014 Local Government Association press release. Again, this figure only covers the money from central government, including some funding from changes to the rules on local business rates.

These figures are only broad averages, and individual councils have had different experiences. Councils that raise more of their money from council tax revenues or savings haven’t been hit as hard than others—typically in urban areas serving poorer communities—that are more reliant on central government grants.

We’ve discussed how council budgets have changed over the last few years previously.

This factcheck is part of a roundup of Prime Minister's Questions. Read the roundup.


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