William Eichler 22 May 2019

Councils warn of ‘draconian’ cuts to cover £50bn funding gap

Local authorities have warned that they may be forced to resort to the ‘bare minimum’ of service provision if no extra funding is made available.

An analysis of the financial sustainability of councils up to 2025 from PwC has calculated that increasing demand and rising costs could lead to councils needing an additional £51.8bn of funding over the next six years.

When broken down, PwC’s findings show that the 36 county areas are facing a £21.5bn funding gap up to 2025, while for metropolitan boroughs and London boroughs it is £13.3bn and £3.4bn respectively.

The County Councils Network (CCN), which commissioned the report, warned that another round of ‘draconian’ cuts to local services would have to be undertaken to fill in this funding hole.

Council tax rises, using their reserves, and making services more efficient and productive, will not be anywhere near enough to fill the funding gap.

If the Government does not increase local government funding, then councils would be forced to provide only a basic, ‘bare minimum’ core offer to residents, CCN added.

CCN also stressed that filling the more than £50bn funding gap would only keep services ‘standing still’ and would not improve them or reverse the last nine years worth of cuts.

Cllr Paul Carter, chairman of the CCN, said: ‘Over the last decade councils have played a crucial part in reducing the deficit, but the yearly compounding effect of funding cuts and rising demand means that the situation is fast becoming untenable.

‘This research demonstrates the need for government to provide all councils with additional resources at the Spending Review, with the most significant financial challenges being experienced by county and metropolitan authorities most in need.’

For more on this see, 'The self-sufficiency myth' in The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

PRINCIPAL TRANSPORT PLANNING OFFICER

Hull City Council
£43693 - £46731
We have an exciting opportunity for an experienced professional to join our team in Hull as a Principal Transport Planning Officer. Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

HIGHWAYS AND TRAFFIC ENGINEER - 4 POSTS

Hull City Council
£43693 - £46731
We have several exciting opportunities for suitably qualified Highways Civil Engineers and Traffic Engineers Wilson Centre, 1st floor, Hull HU1 2AG
Recuriter: Hull City Council

Strategic Director, Finance and Resources (S.151 Officer)

Blackburn with Darwen Borough Council
£110,799 - £120,706
Blackburn with Darwen is a distinctive, welcoming and vibrant borough with a strong identity and a genuine buzz about the place. Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Residential Worker, Edge of Care Service

Durham County Council
Grade 7 £29,093 - £32,654 PAY AWARD PENDING
Join a Groundbreaking Team Supporting Families in Seaham Salary
Recuriter: Durham County Council

Bikeability Cycling Instructor

Durham County Council
Grade 4 £24,790 to £25,992 pro rata (Pay Award Pending)
The Road Safety Team are keen to recruit additional Casual Bikability Instructors to join our team of instructors delivering Bikeability cycle trainin Durham
Recuriter: Durham County Council
Linkedin Banner