Three in five (60%) city leaders have warned they will have to draw on already depleted financial reserves this year to ‘stay financially afloat.’
A survey of 24 city council leaders across England and Wales found that 40% will prioritise selling off council assets and reducing non-statutory services to address budgetary pressures.
One in five (20%) identified redundancies and salary reductions as a priority.
The survey, published by the think tank Key Cities, also found that a third of leaders did not support the idea of a mayoral combined authority, citing a lack of clarity over the benefits as one of the main reasons.
Cllr John Merry, chair of Key Cities and Deputy Mayor of Salford City Council, said: ‘Whilst we have become a more optimistic group since the General Election, the realities we face remain stark. Difficult decisions still need to be taken simply to deliver regular services.
‘It gives me no pleasure to see so many colleagues considering the sale of assets and redundances and relying on dwindling financial reserves, among other measures, to stay financially afloat.’
