The Leader of the council, Councillor Shantanu Rajawat has outlined that the council will need to make tough decisions to produce a balanced budget that continues to provide vital services and the ambitious vision for Hounslow.

Cllr Rajawat has responded to the proposed £64 billion funding package for local authorities announced by the Government on 18 December.   

The deal will make available almost £4 billion more funding for councils in England in 2024-25, an increase of 6.5% on 2023-24, which is an above inflation rise.

It would also mean that councils could be able to increase council tax by up to 3% without a local referendum with a further 2% for those responsible for adult social care services, with additional flexibilities for some authorities. However, this is entirely up to the local authority,

Commenting on the funding package cllr Rajawat, said: "It's deeply disappointing that the Government has failed to recognise the ongoing strain and increasing demand on council services with the 2024/25 settlement. 

"Chronic underfunding for the last 10 years has seen our budgets and services stretched and squeezed. Despite urgent calls to address the skyrocketing costs and financial distress every borough is experiencing, they have failed to listen or recognise the damage done by a wave of reckless policies which have caused a crisis in health, social care, the asylum system and temporary accommodation.  

"With rising costs pinching households every penny, Hounslow, like many local authorities, have been shouldering the responsibility to provide the additional support residents need.  

"Sadly, the proposed local government funding settlement is calculated on the assumption that London Boroughs will put up council tax by a maximum of 4.99%, which provides more than half of the additional funding in Hounslow's settlement.

"If this proposal goes ahead, we will face the stark choice of either putting up council tax or having a significant budget shortfall. Once again, the Government is placing further strain on hard-pressed citizens.  

"The current system of funding for local government is simply unsustainable and requires a fundamental review giving boroughs more ownership over their budgets and futures, with less reliance on Council Tax. 

 "While many local authorities are on the verge of bankruptcy, I can assure residents that we are not in this position thanks to many years of prudent financial management. However, the stark reality of rising costs and demand means we are having to think carefully about the services we provide and how we deliver them.  

"We will continue to work efficiently, keep our costs down and make sure we use our money wisely, delivering services that make a real difference to residents' lives."

Hounslow Council Leader, Councillor Shantanu Rajawat says the new deal forces councils to raise tax or slash budgets (credit: Xander11012/ Wikimedia commons).

Behind the new deal is Levelling Up Secretary Michael Gove, who put forward the plans to support local authorities across the country during the ongoing cost-of-living crisis.

Mr Gove said: "Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve.

"We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up."

To read the full provisional local government finance settlement 2024/25 published by the Department for Levelling up, Housing and Communities on 18 December, click here.   

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