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Neighbourhood services under strain: How a decade of cuts and rising demand for social care affected local services

England’s most deprived areas were hit by the largest local authority spending cuts during a decade of austerity.  

Social care disability group

England’s most deprived areas were hit by the largest local authority spending cuts during a decade of austerity.

In a week in which elections are being held in 144 councils across England, this report shows how grant cuts and rising demand for social care shrunk the scope of local government in England – and exposes the lack of data in local government performance.  

With the coalition government taking little account of how dependent local authorities were on grant funding in 2010, the most grant-dependent and deprived areas such as Birmingham, Lambeth, and Salford were more likely to make deeper cuts to neighbourhood services, reducing the quality and accessibility of services.  

Key findings include: 

  • The miles covered by bus routes fell 14% between 2009/10 and 2019/20, with deprived areas more likely to see reductions in routes.
  • A third of England’s libraries closed in the same period, with more closures in the most deprived areas.
  • Not all services declined – the overall percentage of roads in need of maintenance did not get worse between 2009/10 and 2019/20, and 37 local authorities saw an improvement in road quality during the decade.

The report also finds that variation in the performance of local services was also due to local politics and council initiatives, but a lack of key data – the government lacks information for two-thirds of neighbourhood services spending, which accounted for £10bn of local authority spending in 2019/20 – means the government is unable to truly understand why local authority performances vary.  

Institute for Government

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