“This is a turning point”: £139 million given to Luton Council to ‘level playing field’
Nearly £140 million will be given to Luton Borough Council as part of a new government drive to ‘level the playing field’ across the country.
Fair Funding is part of a ‘radical overhaul’ of how local authorities are funded, with England’s councils getting a total of £84.6 billion for essential services in the new multi-year settlement.
But the council says the move ‘only begins’ to redress the balance after it had £186 million stripped from its budget over 14 years.
Rachel Hopkins, MP for Luton South and South Bedfordshire, said: “Since I was elected to Parliament in 2019, I have made it my mission to champion local government and fight for fairer funding for Luton Council.
“I am delighted that under a Labour government these calls are finally being heard, and our area will benefit from meaningful investment after years of cuts and decline.
“This £139 million cash injection for our area will make a real difference to people’s everyday lives by boosting the services we all rely on. It means more money for our high streets, youth
services, and roads.”
Secretary of State for Housing, Communities and Local Government Steve Reed said: “This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for local leaders to invest in getting back what has been lost – to bring back community hubs, clean streets, and other vital local provisions.”
The council will review the details of the settlement and look at how the extra funding can be best used “to reduce the underlying issues of deprivation and cost-of-living challenges Luton continues to face”.
A report by the Institute for Fiscal Studies found that Luton had the second-largest gap between assessed need and public spending of any local authority in England.
A spokesperson for the council said: “For many years, Luton and its community have been underserved and underfunded by central government.”
LBC said the funding “only begins to address the impact that historic funding reductions have had on council services and the town as a whole”.
The spokesperson explained: “Demand for services continues to rise sharply, particularly in children’s services, adult social care and housing, where pressures are being driven by increasing need and complexity among our most vulnerable residents.
“Despite these challenges, and thanks to the strength and resilience of Luton’s community, the council has continued to set a balanced budget while prioritising support for those most in need, and will continue to do so.”