Joanne Pitt, CIPFA Senior Policy Manager
As the UK’s Autumn Budget 2024 approaches, the public sector stands at a crossroads. For too long, we’ve been stuck in a cycle of short-term fixes and emergency measures. The Chartered Institute of Public Finance and Accountancy (CIPFA) believes that this Budget must be a turning point—a chance to address the underlying crises that threaten public services and create a foundation for long-term sustainability.
Here’s what CIPFA wants on the table in this critical budget.
1. A Long-Term Approach to Public Sector Financing
The reliance on Exceptional Financial Support (EFS) to keep councils afloat is no longer sustainable. In 2024 alone, 19 councils required emergency funding, a stark reminder of the sector's instability. This cycle of stopgap measures must end.
The Autumn Budget should introduce multi-year, stable funding that allows public services to plan effectively, deliver improvements, and innovate. By providing long-term financial security, we can break the cycle of instability and foster stronger, more resilient public services.
2. Fixing Health and Social Care Funding
The NHS and social care are at breaking point. While prevention has been a recent focus, it won’t be enough without broader reform and greater integration between the two systems. People need services that work together, ensuring timely and effective care.
The Budget must prioritise:
- Investment in prevention and integration across health and social care
- Capital funding to modernise NHS facilities and embrace new technologies that can enhance service delivery
With local authorities struggling to meet rising demand, social care needs stable funding to shift from reactive crisis management to prevention, delivering better value for taxpayers and improving care outcomes.
3. Reforming Council Tax for Fairer Funding
The current council tax system is outdated and unfair. In 2024/25, households in the Northeast will pay £420 more than those in Greater London for a Band D property. This disparity is unsustainable and perpetuates regional inequalities.
The Budget must reform council tax, addressing these inequalities and ensuring a fairer, more modern system of local government funding. This shift is crucial to supporting local authorities as they deliver vital public services.
4. Empowering Local Authorities Through Devolution
Devolution is key to driving economic growth and improving local service delivery. Local authorities are best positioned to make decisions for their communities but lack the powers and funding to do so effectively.
The Autumn Budget should provide real financial backing for devolution, ensuring local governments have the resources needed to drive meaningful change. CIPFA’s research shows that empowered local authorities, when given autonomy and proper funding, can tackle regional inequalities and deliver tailored, efficient solutions.
5. Strategic, Transparent Spending
We need a smarter approach to public sector spending. Currently, too much funding is injected at the last minute, driven by political motives rather than long-term strategy. The Autumn Budget must prioritise transparency and strategic coordination between government departments.
Public spending should align with clear policy objectives, and the Budget should include a robust evaluation process to ensure value for money. Let’s shift away from politically driven spending and focus on long-term goals that will strengthen public services.
A Budget for the Future
Autumn Budget 2024 presents a unique opportunity to reset the course for the UK’s public sector. By tackling structural issues in health and social care, reforming local government funding, and empowering local authorities through devolution, we can create a resilient, efficient public sector that delivers better outcomes for all.
Now is the time for decisive, forward-thinking action. Let’s ensure this Budget sets the foundation for a stronger, fairer future for UK public services.