William Eichler 21 August 2023

Councils face £5bn deficit

Councils face £5bn deficit image
Image: Pla2na / Shutterstock.com.

Local authorities are facing a £5.2bn deficit by April 2026 even after they have made £2.5bn of planned cuts, new research has revealed.

A survey of 190 upper-tier authorities in the UK by the BBC's Shared Data Unit has found that the average council now faces a £33m predicted deficit by 2025-26.

This represents a 60% increase on the predicted £20m deficit recorded two years ago.

Chair of the Local Government Association (LGA), Cllr Shaun Davies, told the BBC that the predicted deficit was the result of inflation, the introduction of the National Living Wage, energy costs and increasing demand for services.

Cllr Tim Oliver, chairman of the County Councils Network, said: 'Despite the government increasing funding for councils over recent years, a combination of high inflation and rising demand has left county and unitary authorities facing some of their most toughest budgetary decisions to date this year.

'County authorities will do all they can this year to deliver these savings whilst protecting vital frontline services, particularly care services, but there is now little fat to cut after a decade of financial restraint and many councils are facing significant in-year overspends as a result.'

SIGN UP
For your free daily news bulletin
Highways jobs

Family Support Worker

Durham County Council
Grade 6 - £27,269 - £30,060 (Pay award pending)
Do you have a real passion for helping families to make positive changes for themselves and their children? This might be the right role for you!   WH Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £24,404 - £25,183 Pro Rata to hours worked Pay award pending
WHAT IS INVOLVED? We are looking to appoint a part time Clerical officer/Receptionist within Business Services to provide a professional, effective a Durham
Recuriter: Durham County Council

Administration Assistant

Durham County Council
£25,584 - £27,711 pro rata
Administration Assistant Grade 5    £25,584 - £27,711 pro rata Temporary – required from 1st October 2025 until 31 December 2025 37 hours per week, Te Consett
Recuriter: Durham County Council

Support Assistant

Durham County Council
£24,027 pro rata
Support Assistant Grade 1 £24,027 pro rata Temporary – required from 1st October 2025 until 31st October 2026 Part Time, 32.5 hours Mon - Fri 9am -4pm Consett
Recuriter: Durham County Council

Lecturer in Foundation Learning -Maths, English and Digital

Durham County Council
Grade 9 £34,314 - £37,938 pro rata for part-time term time working PAY AWARD PENDING
The DurhamLearn Foundation Learning programme area delivers Digital Skills, English and Maths Functional Skills.   An opportunity has arisen for a Lec Durham
Recuriter: Durham County Council
Linkedin Banner