Council leaders from major cities outside London say they will be forced to raise council tax and sell off assets to cope with surging demand for adult and children’s social care.
According to new findings from Key Cities’ annual Leaders’ Survey, social care now accounts for over a third of all financial pressures, with homelessness, temporary accommodation and housing close behind.
More than 70% of surveyed councils reported that they expect to increase council tax in 2026, while 60% plan to dispose of assets to stabilise budgets. Only 40% are considering service redesigns.
The trend marks a sharp shift from last year, when most leaders (60%) prioritised service redesigns and drawing on reserves, according to the cross-party network.
With the LGA warning of an £8.4bn funding gap by 2028–29, city leaders say current spending review proposals fall far short of what’s needed to maintain services.
Cllr Kevin Guy, leader of Bath & North East Somerset Council and deputy chair of Key Cities, said: ‘Councils are reaching the limits of what they can do with the resources available to them. Every year we are asked to do more with less, and the pressures on essential services are mounting up.
‘The survey has highlighted the need for reform, and the importance of our network as a strong collective calling for changes to a broken system. What we need is a fair, long-term funding settlement that will give councils the confidence to plan ahead, invest in prevention, and protect vital community services.’
