William Eichler 03 July 2026

Council chiefs urge next PM to close £7bn funding gap

Council chiefs urge next PM to close £7bn funding gap image
© Andrii Yalanskyi / Shutterstock.com.

The LGA is calling on the next Prime Minister to lay out a new path for local services that is not reliant on council tax rises, short-term fixes and unsustainable emergency bailout arrangements.

The call comes as a new Local Government Association (LGA) analysis reveals English councils face a £7bn funding gap by 2028/29, driven by growing demand for children's and adult social care, homelessness support, home-to-school transport, and new statutory duties.

By 2028/29, councils will face cost pressures equivalent to 22% of current spending just to maintain existing services, with 36 councils already needing exceptional financial support this year to balance their books.

LGA chair Cllr Louise Gittins warned that without reform, residents face longer waits for care, rising homelessness and cuts to everyday services like libraries, parks and roads.

She urged the incoming PM – who is likely to be Andy Burnham – to commit to genuine, long-term reform of council funding rather than repeated emergency fixes.

‘Whoever takes up the keys to Number 10 will have a lot of competing priorities. But fully funded, sustainable public services will need to be at the heart of any plans to improve lives and inspire hope in the future,’ she said.

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