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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Elections Officer

Hyndburn Borough Council
£27,711 – £30,060 per annum
Are you an organised and detail-oriented professional with a passion for democracy? Accrington, Lancashire
Recuriter: Hyndburn Borough Council

Economic Development Officer

Hyndburn Borough Council
£36,124 – 37,938 per annum
Hyndburn is an attractive area set in the heart of Pennine Lancashire, within easy reach of Manchester, the lakes and the Coast. Accrington, Lancashire
Recuriter: Hyndburn Borough Council

Public Health Officer

North Yorkshire Council
£41,511 - £45,718 per annum
We are seeking to recruit a Public Health Officer to join our supportive and high achieving public health team at North Yorkshire Council. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Communications Team Leader

Mansfield District Council
£38,626 - £42,708 per annum (pay award pending)
We're looking for a talented Communications Team Leader Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Principal Housing Enforcement Officer

Durham County Council
Grade 11 £39,513 to £43,693 per annum
We are looking for two experienced housing professionals with the ability to effectively plan and manage a high-volume and complex housing enforcement Seaham
Recuriter: Durham County Council
Linkedin Banner