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

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Social Worker - Assessment & Intervention, South Essex

Essex County Council
£34902.0000 - £50081.0000 per annum
Social Worker - Assessment & Intervention, South EssexPermanent, Full Time*£34,902 to £50,081 per annumLocation
Recuriter: Essex County Council

Regeneration Communications Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,737 - £49,365 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Community Support Worker - South Essex

Essex County Council
£25395.00 - £32131.00 per annum
Community Support Worker - South EssexPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council
Linkedin Banner