DEI vs Diminishing Budgets: Are UK Councils Really Cutting Services to Fund Inclusion?

The Short Answer (Before We Spiral Into Outrage)

No, UK councils are not broadly cutting core services to “pay for DEI”.

That idea floats around because it feels intuitive. Money is tight, something new appears, therefore something else must be sacrificed. Reality is more irritatingly complex and less dramatic.

Most diversity, equality and inclusion (DEI) activity in English councils is:

• Legally required
• Operationally embedded (not a separate “big spend pot”)
• Tiny compared to statutory services like social care

If anything, councils are cutting visible services because of structural funding gaps, not because they suddenly decided to prioritise inclusion workshops over bin collections.

What DEI Actually Means in UK Local Government

It’s Not a “Nice-to-Have” — It’s a Legal Obligation

Under the Equality Act 2010, councils must comply with the Public Sector Equality Duty (PSED).

That means they are legally required to:

• Eliminate discrimination
• Advance equality of opportunity
• Foster good relations between groups

This is not optional spending. It is part of how services must be designed and delivered.

“Public bodies must have due regard to the need to eliminate discrimination and advance equality.” — UK Government guidance

Translation:
DEI is baked into decision-making, not a bolt-on project you can simply cancel to save money.

Most DEI Spending Is Small and Embedded

Typical council DEI-related costs include:

• Staff training (often modest internal sessions)
• Accessibility improvements (ramps, interpreters, digital access)
• Community engagement roles
• Data collection to ensure fair service delivery

These are usually:

• Spread across departments
• A fraction of total budgets
• Sometimes funded through specific grants

Compare that to:

• Adult social care: often 40–60% of budgets
• Children’s services: rapidly rising costs

The scale difference is not subtle.

“The overwhelming majority of council spending is on statutory services.” — National Audit Office

Where the Money Is Actually Going (And Why Services Are Still Being Cut)

Social Care Is Consuming Everything Else

If you’re looking for the real budget pressure, it’s here.

• Ageing population
• Rising care complexity
• Workforce shortages
• NHS spillover demand

Councils cannot legally refuse these services.

So when budgets tighten, they cut:

• Libraries
• Youth centres
• Road maintenance
• Cultural services

Not because of DEI, but because those are discretionary.

“Councils have little flexibility once statutory duties are met.” — Local Government Association

Central Funding Cuts Changed the Entire Game

Since 2010:

• Central government funding dropped significantly in real terms
• Councils became more reliant on council tax and business rates
• Economic inequality between areas widened

This created a system where:

• Demand rises
• Income is unstable
• Costs are fixed

DEI didn’t cause that. Policy did.

“Local government funding has been fundamentally reshaped since 2010.” — Institute for Fiscal Studies

Why People Think DEI Is the Problem

It’s Visible, While Structural Problems Are Not

Humans are great at spotting what’s in front of them and terrible at understanding systems.

You might see:

• A diversity training session
• A new inclusion officer
• Accessibility upgrades

At the same time, you notice:

• Your local library closed
• Potholes getting worse
• Reduced services

So the brain connects them.

It’s emotionally satisfying. It’s also mostly wrong.

Political Narratives Simplify a Complicated System

DEI has become a political lightning rod.

Some narratives frame it as:

• Wasteful
• Ideological
• A distraction from “core services”

But the data doesn’t support it being a major driver of financial strain.

Even critics rarely show DEI spending anywhere near the scale of:

• Social care
• Housing pressures
• Inflation-driven costs

Are Councils Ever Cutting Resources for DEI?

In Rare Cases, Prioritisation Happens (But It’s Not What You Think)

There are situations where councils:

• Allocate funding to meet equality obligations
• Invest in inclusive service design
• Fund targeted programmes for disadvantaged groups

But this is typically:

• Reallocation within existing service budgets
• Compliance-driven spending
• Or externally funded initiatives

It is not:

• Large-scale diversion of funds from core services
• The primary cause of financial distress

What Experts Actually Say

• National Audit Office: Financial pressure is driven by demand and funding gaps
• Institute for Fiscal Studies: Structural funding reform is needed
• Local Government Association: Councils are increasingly unable to fund even basic services

“The challenge is not discretionary spending, but the rising cost of statutory services.” — NAO summary

The Real Trade-Off (And It’s Not DEI)

What’s actually happening is far less dramatic and far more concerning:

Councils are choosing between:

• Funding care for vulnerable people
• Maintaining everyday local services

DEI sits inside how services are delivered, not as a competing budget monster.

Final Reality Check

If DEI spending disappeared tomorrow:

• Councils would still face major deficits
• Social care costs would still dominate
• Libraries and local services would still be under pressure

Because the core issue is structural:

• Reduced central funding
• Rising demand
• Limited revenue flexibility

Blaming DEI is like blaming the office kettle for the company going bankrupt.

Technically present. Completely missing the point.

Sources and Further Reading

• Council spending on diversity doubles to £23m
• County Councils Network analysis on spending pressures
• Local Government Finance Settlement overview
• Institute for Fiscal Studies – local authority funding
• Local Government Association – EDI and economic growth
• Byline Times analysis of DEI savings claims