The Institute for Fiscal Studies has announced today that Conservative plans for local authority funding were insufficient and would lead to service cuts or council tax rises. Liberal Democrat candidate for Orkney and Shetland, Alistair Carmichael has responded, highlighting the risks of unfunded policy announcements to local authorities.
The IFS said:
"The money allocated by the Conservatives would not be sufficient to meet rising costs and demands over the next parliament... this would necessitate a further retrenchment in services or unfunded top up to the plans set out."
Commenting, Mr. Carmichael said:
"The IFS has been pretty damning on the Prime Minister's proposals for local government. Boris Johnson wants to balance the budget on the backs of local councils, making unfunded promises on social care and expecting others to foot the bill. They are choking off the success of local authorities, expecting them to provide more and more with less and less funding.
"We have already seen how harmful a "command and control" approach can be for councils under SNP governance. Local authorities face increasing constraints on their budgets through the SNP's centralising agenda. Unfunded policy plans leave local communities in the lurch."
"Last week we heard from the IFS that the Liberal Democrats are "the most fiscally prudent" party in terms of public finances. If the IFS say that our budget plans are credible and the Resolution Foundation say that they are progressive, it's a clear indication that the Lib Dems are the party to back for a stronger, fairer economy."