Ellie Ames 25 October 2024

English councils face £9.3bn deficit by 2026-27

English councils face £9.3bn deficit by 2026-27 image
Image: Andrzej Rostek / Shutterstock.com

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.’

SIGN UP
For your free daily news bulletin
Highways jobs

Targeted Youth Adviser

Essex County Council
£29512.00 - £34720.00 per annum
Targeted Youth AdviserPermanent, Full Time£29,512 to £34,720 Per AnnumLocation
Recuriter: Essex County Council

Administration Assistant

Durham County Council
Grade 4 £25,583 - £26,824
A vacancy has arisen within Business Services for a full-time Administration Assistant. This is an exciting opportunity to join the team who support o Peterlee
Recuriter: Durham County Council

Roofer

Durham County Council
£36,040 p.a. (Made up of £24,027 salary plus £12,013 p.a Interim Operational Allowance)
Salary
Recuriter: Durham County Council

Classroom Teacher (static)

Durham County Council
£32,916 - £51,048
Required from 1 September 2026. Permanent, full time. This post is based at Croft Community School which is a generic special school for pupils who h Stanley
Recuriter: Durham County Council

Workshop Fitter

Durham County Council
£32,597 £36,363
You will be based at Chilton Depot     Fleet Services in Environment are looking for a Workshop Fitter to join their Team.   WHAT IS INVOLVED? To und Durham
Recuriter: Durham County Council
Linkedin Banner