Localis, a leading non-profit think tank, has responded to the Budget 2024 announced by the Labour Government on Wednesday 30 October, 2024. Localis chief executive, Jonathan Werran, has provided insights on the impact of the budget on place-based policies and the role of local government in achieving the government’s priorities for economic growth, infrastructure development, and public service restoration.
According to Werran, the budget has increased powers for combined authorities of Greater Manchester and the West Midlands, highlighting the government’s focus on mayoral-led direction for local growth and reshaping of public services. He emphasized the importance of utilizing political capital to realize the government’s vision of English devolution, along with aligning local growth plans with a modern national industrial strategy and constitutional reform.
The Budget has also addressed immediate resourcing crises faced by councils, with a real terms funding increase of £1.3 billion in grant funding and an extra £600 million for social care. However, Werran also noted that a 1.5% real terms uplift in day-to-day spending suggests a tight outlook for local public finances and the need for long-term solutions.
In terms of capital funding, Werran pointed out that the end to ‘tournament financing’ of individual bidding pots is a positive step, but questions remain on how the measures in this year’s budget will unlock private and institutional investment in various types of infrastructure.
Regarding the housing crisis, Werran acknowledged the £500 million announcement to top up the Affordable Homes Programme and the retention of right to buy revenues by local councils. However, he stressed the importance of addressing the financing and resourcing needs for new builds to meet the urgent demand for housing.
Lastly, Werran commented on the budget’s impact on high streets, stating that the promise of permanently lower business rates from 2026/27 and 40% relief for the retail, leisure, and hospitality sectors in the coming year is a step in the right direction. He also called for support against shoplifting and anti-social behavior, which can negatively impact the foundational local economy.
For further enquiries, please contact Localis chief executive, Jonathan Werran, at 0870 448 1530 or jonathan.werran@localis.org.uk. For more information about Localis, visit their website at www.localis.org.uk.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.