Laura Sharman 12 November 2020

County councils warn of insolvency risk without frontline cuts

Only a fifth of England's largest councils are confident they can deliver a balanced budget next year without dramatic reduction to services, a new survey has revealed.

The research by the County Councils Network (CCN) warns that confidence drops even further in 2022/23, with just one local authority confident of setting a balanced budget that year.

The councils warned there is limited scope to reduce non-care services such as libraries, bus routes, and school transport, meaning reductions are likely to fall on social care services.

Over half (56%) are planning to reduce access to care packages, 27% will have to cut services for children in council care, and a third are planning reductions to early years and youth services.

Just one council said they would be able to invest in adult social care over the next two years if extra funding was not made available.

Cllr David Williams, chairman of the CCN, said: 'Councils have pulled out all the stops throughout this pandemic to protect residents, maintain vital services and support the economic recovery. To ensure that they can continue to do whatever it takes over the winter to combat Coronavirus and to prevent severe reductions to services next year, they need a significant increase in funding for 2021/22, alongside an income guarantee to protect against losses in council tax.'

Cllr Nick Rushton, leader of Leicestershire County Council, added: 'We have taken tough decisions since 2010 to put our council on a sustainable footing, but Coronavirus has dramatically changed the situation and we are now facing severe funding shortfalls and uncertainty next year. The big difference from last year is the drop in council tax income and this is why an "income guarantee" for councils can stave off major service reductions.'

SIGN UP
For your free daily news bulletin
Highways jobs

Independent Living Officer

Kirklees Metropolitan Council
£26,403 - £28,142
Our employees are at the very heart of the services we provide to the community Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Catering Assistant

North Yorkshire Council
£13.28 per hour
We have an opportunity to join our award-winning Facilities Management catering team York, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.47 per hour
Are you looking for a part time cleaning role? York, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.47 per hour
Are you looking for a part time cleaning role? York, North Yorkshire
Recuriter: North Yorkshire Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council
Linkedin Banner