𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Andy Burnham has been accused of waging a “spiteful class war” on non-Labour councils by cutting funding and reallocating support to his party. Conservative and Liberal Democrat-controlled local authorities in England will be hit by £478million cuts in Government grants and funding over this parliament, reports suggest.

Meanwhile, Labour councils will be handed a £1.6billion increase, prompting warnings from local leaders that their abilities to collect bins and fix potholes could be “at risk” as a result. Tory leader Kemi Badenoch told The Telegraph: “Labour’s spiteful class war continues – they just can’t help themselves. A Labour Government taking money away from Conservative-run councils to hand it to their own is like financial gerrymandering. And it’s ordinary people who will pay the price in higher council tax and worse services, through no fault of their own.”

Labour said the shift would ensure funding is rebalanced across areas with higher levels of deprivation, fulfilling Mr Burnham’s pledge to deliver “good growth in every postcode”. But Steven Broadbent, leader of Conservative-run Buckinghamsphire Council, said the Prime Minister “apparently wants growth in every postcode, just not those where he’s not in control”.

Analysis of House of Commons data by The Telegraph suggests Conservative-run local authorities will see their Government controlled funding slashed from £4.4billion this year to £4.1billion in 2028/29. Meanwhile, Lib Dem councils will see their funding reduced from £3.9billion to £3.7billion.

Labour councils will be handed a significant boost over the same period, reports suggest, with the amount of money they receive rising from £10.8billion to £12.3billion. The biggest increase will go to Labour-run Birmingham Council, which declared effective bankruptcy in 2023.

Ms Badenoch described the decision to slash funding to local authorities including Tory-controlled Wandsworth, which will receive £84million less from the Government by the end of the decade, as “outrageous”. The council warned that it would have to increase taxes in response, with a 94% hike expected in April.

Both Wandsworth and Tory-run Tonbridge and Malling council have delayed or axed social housing projects due to a funding shortfall, it is understood. Matt Boughton, leader of Tonbridge and Malling council, suggested Labour was “punishing” it for “managing our finances well” and Jeff Brooks, Lib Dem leader of West Berkshire council, said the area’s infrastructure was “at risk” because of the cuts.

A spokesperson for the Ministry of Housing, Local Government and Communities said: “We’re fixing an outdated funding system so funding goes where need is greatest. As a result, nine in 10 councils will receive funding that broadly matches their need, up from only a third before our reforms, so they can deliver the high-quality public services local people need.

“This is alongside making over £78billion available for council finances this year, with the majority of money un-ringfenced, so local leaders can decide for themselves how best to spend on their priorities.”