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

Educational Psychologist (EP)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£53,238 - £64,512 per annum
Educational Psychologist (EP)£53,2... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

HMO ASB OFFICER

Royal Borough of Greenwich
PO1 - £41,113 to £43,680
We are looking for three HMO Anti-Social Behaviour Officers to join our Private Housing London (Greater)
Recuriter: Royal Borough of Greenwich

South-East London Fostering Hub Programme Manager

Royal Borough of Greenwich
PO6 (£54,267 - £57,402)
The role will provide strong programme management oversight, ensuring projects are well planned, effectively delivered a London (Greater)
Recuriter: Royal Borough of Greenwich

Professional Educator (Part Time, 28 hours)

Royal Borough of Greenwich
PO6 - £54,267 to £57,402
We are looking for an experienced and enthusiastic Professional Educator to join our Quality Assurance and Workforce development Service. London (Greater)
Recuriter: Royal Borough of Greenwich

Principal Lawyer Litigation and Housing

Kirklees Metropolitan Council
£53,051 to £58,258
You will join a team of experienced Lawyers, Legal Officers, and Paralegals supported by a dedicated Business Support Team. Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner