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

Social Worker - Children in Care, West Essex

Essex County Council
Up to £0.0000 per annum
Social Worker - Children in Care, West EssexPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council

Reparation and Volunteer Development Officer

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
We are looking to recruit a Reparation and Volunteer Development Officer to join the Youth Justice Team Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Manager - Children's Homes Service

Durham County Council
Grade 11, £40,777 - £45,091 per annum. Pay award pending.
As a Deputy Manger you will work directly with children and young people, their families and carers, as well as other relevant professionals identifie Spennymoor
Recuriter: Durham County Council

Apprentice Financial Management

Durham County Council
£15,434 per annum (£8.00ph) NMW
Earn.  Learn.  Qualify.   Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, d Durham
Recuriter: Durham County Council

Apprentice Civil Engineer

Durham County Council
£15,434 per annum (NMW in first year of apprenticeship)
Earn.  Learn.  Qualify. Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, dev Durham
Recuriter: Durham County Council
Linkedin Banner