William Eichler 16 October 2025

England’s councils face poorest finances since 2010

England’s councils face poorest finances since 2010 image
© Ink Drop / Shutterstock.com.

Local authorities in England are set to be poorer by the end of this parliament than they were in 2010, according to a new analysis by the Institute for Government (IfG).

The Public Services Performance Tracker 2025 found that one in six upper-tier authorities will rely on emergency funding in 2025/26, while reserves have fallen to their lowest levels since 2011/12.

Over two-thirds of council spending now goes on adult and children’s social care, up from around half in 2009/10, with the cost of adult social care rising faster than inflation for the past decade.

Supported by the Nuffield Foundation, the report also highlighted that only two of the 68 local authorities assessed by the Care Quality Commission achieved an ‘outstanding’ rating.

Spending on children’s social care has doubled relative to the growth in children in care, while a shortage of fostering households continues to strain the system.

Meanwhile, pressures from homelessness have intensified. Net spending on temporary accommodation has increased nineteen-fold since 2009/10, and one in 200 households now lives in temporary housing.

To read more about the upcoming Autumn Budget check out the following from our Autumn Budget Insights series: The local government balancing act by Jonathan Werran, chief executive of Localis.

SIGN UP
For your free daily news bulletin
Highways jobs

Lead Social Worker WMF2939e

Westmorland and Furness Council
£47,181 to £48,226
We have an exciting opportunity for the role of Lead Social Worker in the Learning Disability, Transition and Autism Team Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Streetworks Compliance Officer WMF2942e

Westmorland and Furness Council
£36,363.00 - £37,280.00
The Streetworks Compliance Officer role within the Highways Service plays a vital part in managing and overseeing streetworks Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Family Hub Practitioner - WMF2923e

Westmorland and Furness Council
£32,061 - £32,597
An exciting opportunity has arisen for a Family Hub Practitioner in the Best Start Family Hubs Cumbria / Various
Recuriter: Westmorland and Furness Council

Support Officer

Durham County Council
Grade 4 £25,583 - £26,824 pro rata
We have an exciting opportunity for a part time temporary 24 month contract Support Officer to join our dedicated team within Business Services. WH Durham
Recuriter: Durham County Council

Class Teacher

Durham County Council
£37,101- £45,352
KS2 Class Teacher (Maternity Cover)  This is a maternity cover post and will continue until the substantive post holder returns. The successful candid Peterlee
Recuriter: Durham County Council
Linkedin Banner