Local News

Council 'can't provide all services expected' with 60 million budget gap

Stockport council faces a significant financial crisis, with a budget gap exceeding £60 million by 2028/29. Council leader Mark Hunter has warned of inevitable service cuts due to rising costs in adult social care, children's services, and homelessness support. He described the current funding system as "broken" and unsustainable without additional financial support.

Deputy leader Mark Roberts echoed these concerns, noting that the financial challenges persist despite a change in government. The council has already increased council tax, adding £111 to yearly bills for band D homes. Cheadle MP Tom Morrison called for national intervention, highlighting the economic pressures and cost of living crisis that began under the previous Conservative government.

Governance

Revised Guidance on Middle-Class Fly-Tipping in England

Local authorities in England will receive new guidance on handling middle-class fly-tipping, addressing concerns over disproportionate fines for leaving items outside for neighbours. The Local Government and Social Care Ombudsman (LGO) highlighted recent overzealous enforcement, urging councils to adopt a proportionate approach.

The forthcoming nine-page guidance advises councils to initially offer advice, followed by a written warning, and only then issue modest financial penalties. Campaigners argue that private companies issuing fines for profit engage in corrupt practices, and the LGO calls for professional and proportionate conduct from contractors. The guidance aims to prevent misuse of enforcement powers and ensure fair treatment of residents.

Local Council News

Leeds City Council Faces Severe Financial Challenges Over Next Five Years

Leeds City Council faces severe financial challenges, needing to find £273.7 million in savings over the next five years. Key pressures include:

• Increased costs for looked after children, with external placements averaging £350,000 per year.

• Rising demand in adult social care, costing an additional £600,000 this year.

• Growing needs for adults with learning disabilities and mental health support.

Despite a 70% real-terms funding reduction over fifteen years, the council remains committed to its Best City Ambition, focusing on health, inclusive growth, and zero carbon. Measures include a recruitment freeze and non-essential spending cuts, while council tax remains the second-lowest among England's core cities.

Housing

Local Authorities Purchasing Tenanted Properties: A Viable Option for Landlords

Local authorities in the UK are increasingly purchasing tenanted rental properties from private landlords to prevent homelessness and expand social housing. This trend is driven by landlords exiting the market due to tax changes, compliance costs, and legislative uncertainties. Key initiatives include:

• Lewisham Council: Actively buying tenanted homes to ensure tenant stability and increase affordable housing.

• Greater London Authority: The £152 million Right to Buy-back scheme allows councils to purchase homes with tenants in situ.

• Bristol City Council: Focuses on buying properties where tenants risk losing housing, aligning with its goal to expand council housing stock.

For landlords, selling to local authorities offers a simplified sales process and tenant security, though it may involve accepting slightly below market value.