Chancellor Sajid Javid has fuelled general election speculation by fast-tracking his spending review.
He will deliver his one-year spending plans next week and signalled he would increase funding on voter-friendly areas.
He wrote in The Telegraph: “Thanks to the hard work of the British people over the last decade, we can afford to spend more on the people’s priorities – without breaking the rules around what the government should spend – and we’ll do that in a few key areas like schools, hospitals and police.”
With government finances still shaky and uncertainty about what will happen after 31 October, Javid will have limited options and is unlikely to go beyond the boundaries set by his predecessor Philip Hammond.
Javid said there would be “no blank cheque” for Whitehall departments.
The announcement has fuelled speculation in Westminster that the government is planning an autumn election. If this happens then any new settlement would be shelved. This adds to the uncertainty at a time when local authority budgets are under extreme pressure.
The Local Government Association, which represents councils in England and Wales, said its members needed certainty.
It said: “Between 2010 and 2020, councils will have lost almost 60p out of every £1 the government had provided for services. Despite this councils have continued to deliver for their communities, providing vital services daily.
“Councils can do so much more but they need financial reassurance from the government. The upcoming spending round needs to bring councils financial certainty to allow them to continue to lead their local areas, improve residents’ lives, reduce demand for public services and save money for the taxpayer.”
