William Eichler 02 July 2019

One in three councils fear funding for legal duties will 'run out’

One in three councils fear funding for legal duties will run out’   image

A third of councils fear they will run out of funding to provide statutory services, such as adult social care and protecting children, by the end of this Parliament, a survey has revealed.

Between 2010 and 2020, councils will have lost 60p out of every £1 they had from central Government to run local services. By 2025, the LGA estimates, councils face an overall funding gap of £8bn.

The Local Government Association (LGA) survey of council finances found that one in three councils fear they will run out of funding to carry out their legal duties by 2022/23. This rises to two thirds of councils by 2024/2025 or later.

The LGA’s survey, which has been published to coincide with the organisation’s Annual Conference in Bournemouth today, also found that 17% of councils are not confident of realising all of the savings they have identified this year.

An unprecedented rise in demand means many councils are having to spend more than they planned for in adult social care, children’s services and homelessness support.

The LGA urged the next Prime Minister to prioritise local public services in the Spending Review and give councils urgent certainty about future funding, business rates retention and the fair funding review.

‘As this survey shows, if the Government fails to adequately fund local government there is a real risk to the future financial viability of some services and councils,’ said LGA chairman Lord Porter.

‘Councils would normally have started their budget-setting planning process but remain completely in the dark about how much funding they will have next year. Communities relying on the vital local services that make a difference to their lives deserve better.

‘Securing the financial sustainability of local government must be the top priority for the next Prime Minister.

‘Urgent guarantees are needed that councils will have the funding they need to ensure our vital public services survive the uncertainty ahead.’

PWLB hike: A rise too far? image

PWLB hike: A rise too far?

What impact will the increase to the Public Works Loan Board rate have on councils’ housing and other capital schemes? Neil Merrick investigates.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of HR/OD

Babergh & Mid Suffolk
£60,000 circa
The role will involve working closely with the Senior Leadership Team and Chief Executive to lead our People Strategy and... Ipswich, Suffolk
Recuriter: Babergh & Mid Suffolk

Customer Services Assistant (Libraries)

Essex County Council
Up to £9469 per annum
Please note this is part time position (18.5 hours a week) across Uttlesford, mainly based in Dunmow and Stansted and is to be offered on an initial 6 England, Essex, Dunmow
Recuriter: Essex County Council

Customer Services Assistant (Libraries)

Essex County Council
Up to £18938 per annum
Please note this position is to be offered on an initial 6 month , fixed term basis. Do you enjoy working with people? Enthusiastic about playing a ke England, Essex, Saffron Walden
Recuriter: Essex County Council

Customer Services Assistant - Mark Hall Library

Essex County Council
£17000 - £18950 per annum
Please note that this position is a part time role, offering 18.5 hours per week and is offered on a Fixed Term Basis for a period of 6 months. England, Essex, Harlow
Recuriter: Essex County Council

Senior Practitioner - Family Support & Protection

Essex County Council
Negotiable
Please note this is a fixed term contract or secondment opportunity until December 2020 In Essex County Council we are "Serious about Social Work". H England, Essex, Basildon
Recuriter: Essex County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores what impact the increase to the Public Works Loan Board rate have on councils’ capital schemes and why adopting AI will not just improve customer service response times for councils.

This issue also finds out how local government pension funds are backing infrastructure projects and calls on local government to get better value from its technology spend.

Register for your free magazine