15/08/2022 - Council leader warns of further economic hardship

Cllr Simmons said: “The cost of living crisis is tightening its stranglehold throughout the country. For those living in towns with higher levels of deprivation, such as ours, many don’t have the financial cushion often enjoyed in wealthier areas. We know how much the situation is impacting the lives of many Luton residents and it’s only going to get worse.

“In the same way households are struggling with rising costs, it is also becoming more and more expensive for the council to provide the services that people need. This comes at a time when our budgets are already under immense strain, with savings already required due to the impacts of austerity and the pandemic.

“We are currently seeing an increase in demand for our services as people struggle with the cost of living crisis. At the same time, the trading services which provide valuable income to support our work, are being adversely affected because of the financial challenges so many businesses are facing.

“We are now having to put a recovery plan in place as this year’s budget is forecast to be £10m overspent. This is the reality for councils across the country at the moment and it has been widely reported that inflation, energy costs and other current challenges are predicted to lead to £2.4bn in extra cost pressures to councils this year alone, rising to £3.6bn in 2024-25.

“And yet despite all of this, the government has so far indicated that no additional funding will be provided to help meet the exceptional increases currently faced by local authorities. It is therefore down to councils to absorb these pressures.

“It feels like we are back to the dark days of austerity.

“It is significantly worse this time, however, because we’ve already had to take almost £160m out of our budget over the last 12 years so there is little room for manoeuvre or further efficiencies. “Over the years, councils in more deprived areas such as Luton, have not been allocated our fair share of funding from central government as part of the finance settlement. We are still waiting for the fair funding review which is long overdue.

“Now we are being forced into further difficult decisions, which feels like punishing our communities at a time when they are already suffering so much and need us more than ever.

“I would strongly urge the government to take a close look at what is happening in local government and act now before it’s too late.”