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

Teacher of the Deaf (North East Essex)

Essex County Council
£34000.0000 - £54000.0000 per annum
Teacher of the Deaf (North East Essex)Permanent, Full TimeTeachers Pay and ConditionsLocation
Recuriter: Essex County Council

IT Support Officer - Rochford District Council

Essex County Council
Up to £15.9900 per hour
IT Support Officer - Rochford District Council Rochford, Essex Full-Time, Temporary - 37 hours per week 3-Month Contract £15.99 PAYE / £20.51 Umbrella England, Essex, Rochford
Recuriter: Essex County Council

Experienced Social Worker

Cheshire East Council
£43,149 - £49,658 per annum
Join a council that puts relationships at the heart of practice. Macclesfield/ Crewe
Recuriter: Cheshire East Council

Personal Advisor

Cheshire East Council
£32,578 - £35,570 per annum
Help shape brighter futures for care leavers Crewe, Cheshire
Recuriter: Cheshire East Council

Social Worker (Progressed)

Cheshire East Council
£40,444 - £43,149 per annum
Join our ambitious Children's Services team and help shape brighter futures for children and young people. Macclesfield, Cheshire
Recuriter: Cheshire East Council
Linkedin Banner