New analysis has uncovered a £9.3bn funding shortfall facing councils in England by 2026-27.
Researchers from Cambridge’s Bennett Institute for Public Policy and Newcastle University found that 96% of local authorities forecast a funding shortfall in their medium term financial strategies.
Just 14 of England’s 317 councils said they would be able to balance their budgets or be in a surplus at the end of the period.
Report co-author Andy Pike said ‘nothing short of radical change’ was needed to protect local services.
It comes as four local government associations made a joint call for the removal of siloed and short-term funding streams as part of an ‘urgent’ review of the sector’s funding.
The associations, which represent leaders in place services, children’s services, adult social services and public health, also urged the Government to introduce multi-year funding settlements and provide clarity on funding pots like the Household Support Fund, the Homelessness Prevention Grant and the Shared Prosperity Fund.
The president of the Association of Directors of Environment, Economy, Planning and Transport (ADEPT), Ann Carruthers, said local government needed ‘a funding model that allows us to plan long term, sustainable solutions for our communities and the environment’.
At a ‘pivotal’ moment for children and amid evidence that their life chances are ‘stalling or even deteriorating’, the Budget must invest in children, young people and their families, the president of the Association of Directors of Children's Services, Andy Smith, added.
The president of the Association of Directors of Adult Social Services, Melanie Williams, also urged ministers to work with local government to deliver a ‘long term, sustainably funded plan’ for adult social care.
Association of Directors of Public Health president Greg Fell added: ‘To be able to implement policies that will support people to have better outcomes, we need consistent, adequate funding, and investment in a properly trained and supported workforce.’
