Councils could be forced to cut back service provision if cost and demand pressures continue to grow, researchers have warned.
The Institute for Fiscal Studies (IFS) noted that the main parties’ manifestos were ‘almost silent’ on council funding, meaning there is significant uncertainty about what the financial landscape for local government will look like over the next parliament.
The IFS said local services would likely be cut even if council tax were increased by 5% a year and funding from central government frozen in real terms.
Report author Kate Ogden said: ‘Many councils are under clear financial strain.
‘They are struggling to meet the surging demand and cost for services such as children’s and adults’ social care, residential placements, special educational needs support and temporary accommodation for the homeless.
‘Unless these pressures slow down significantly and quickly, or the next government gives a big injection of funding to local government, councils will likely need to make cutbacks to some areas of provision.’
Local Government Association senior vice chairman Kevin Bentley said: ‘A funding gap of more than £6bn facing local services over the next two years – fuelled by rising cost and demand pressures – means a chasm will continue to grow between what people and their communities need and want from their councils and what councils can deliver.’
