Ellie Ames 02 October 2024

Councils face £54bn funding deficit

Councils face £54bn funding deficit image
Image: TippaPatt/ Shutterstock.com

New research has forecast a £54bn funding shortfall facing England’s local authorities over the next five years.

The analysis by the County Councils Network (CCN) also found that 16 county and rural unitary authorities could be at risk of declaring effective bankruptcy in the next two years.

While annual 3% council tax rises could reduce the deficit to £38bn, the CCN argued that the Government should not rely on rises higher than this to help plug the gap.

Much of the shortfall comes from the network’s forecast of a £26bn rise in additional costs facing councils between 2022 and 2030.

It said 83% of the increase was from adult social care, children’s services, and home to school transport, warning that councils could be left providing little more than care services by the end of the Parliament.

The CCN’s spending review submission calls for a ‘substantive’ cash injection to shore up services followed by ‘deep and fundamental’ reform in children’s services, special educational needs, and adult social care.

CCN finance spokesperson Barry Lewis said: ‘This needs to happen urgently with a plan to be actioned within the next 18 months, otherwise we risk undermining the wide-ranging purpose of local government and derailing the Government’s mission-led approach to public service reform and greater devolution to councils.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

CIPFA Trainee

Oxfordshire County Council
£31537 - £40777
You’re eager to build a career in public finance and committed to completing the CIPFA Level 7 Apprenticeship. You meet the eligibility criteria (including being under 22 years of age before studies commence, based on central government funding criteria Oxford
Recuriter: Oxfordshire County Council

Peripatetic Customer Service Advisor

Oxfordshire County Council
25583 - 29064
The role is customer facing and involves continual interaction with users of the library and library customer service advisers. The staff member delivers events within the library but will need to build and maintain relationships with the wider community. Henley-on-Thames
Recuriter: Oxfordshire County Council

Organisational Development Consultant

Sandwell Metropolitan Borough Council
Band G SCP 32-37 (£42,839 -£48,226 per annum)
Are you ready to shake things up and help shape the future of Sandwell Council? Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner