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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Relief Children's Residential Edge of Care Worker

North Yorkshire Council
£15.84 - £17.29 per hour
Here in North Yorkshire, we have several services that support and empower children. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Practice Supervisor

North Yorkshire Council
£45,718 - £49,764 per annum
We are happy for this role to be based at any of our hubs across the County. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Business Support Officer (Finance)

Royal Borough of Greenwich
£31,524 to £32,931 pro rata
Street Services is seeking a Business Support Officer (Finance) to join its busy Business Support Team. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Housing Inclusion Officer

Royal Borough of Greenwich
£38,934 - £40,755
We are looking for an outstanding individual with the motivation and commitment to delivering excellent services. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Music Centre Instructor Percussion

North Yorkshire Council
£21,731 - £33,902 per annum, pro rata
Harrogate Music Centre is looking for an inspiring and passionate percussion tutor to teach on Saturday mornings (from 9am to 12
Recuriter: North Yorkshire Council
Linkedin Banner