Millions of people in England’s county areas could see cuts to everyday local services as Government funding is set to cover just 2p of every £1 in rising council costs, leaders have warned.
New analysis from the County Councils Network (CCN) estimates county and large rural unitary councils will face £7bn a year in extra service pressures by 2028/29.
Yet new Government grants under the Fair Funding Review and provisional finance settlement are expected to total only £133m over three years – around 2% of those additional costs.
The CCN warns this leaves an £11bn cumulative funding gap – half of the total shortfall facing all councils in England.
A survey from the CCN of affected authorities suggests widespread impacts. Many councils are likely to scale back bin collections, road repairs, libraries, leisure centres and bus subsidies, while social care and youth services also face pressure. Staff redundancies and higher charges for services and parking are also expected.
Council leaders argue recent funding changes shift money towards urban areas and are urging ministers to revise the settlement to prevent the most severe reductions.
Cllr Steven Broadbent, Finance spokesperson for the County Councils Network, said: ‘The funding outlook for county and unitary councils looks increasingly bleak over the next three years, with the government cherry picking the areas to focus funding on and diverting much-needed resource towards urban areas. Instead, the burden is being placed firmly on county and unitary councils and local taxpayers, meaning residents face yearly council tax rises for the foreseeable future.’
He added: ‘Faced with a multi-billion shortfall over the next three years because of these reforms, many county leaders question how ‘fair’ the Fair Funding Review really is.’
