William Eichler 05 March 2025

Survey reveals scepticism reorganisation will fix council finances

Survey reveals scepticism reorganisation will fix council finances  image
Image: ifoung / Shutterstock.com.

A survey of senior council figures has revealed widespread scepticism that reorganisation will fix local finances while many warn of more bankruptcies if ‘radical’ reforms are not implemented.

The annual survey by the Local Government Information Unit (LGIU) found that fewer than one in four senior council leaders think reorganisation will improve council finances.

The survey also revealed that 6% of councils could face effective bankruptcies this financial year unless the Government ‘makes more urgent and radical reforms.’

This figure jumps to 35% of councils that could issue section 114 notices by 2030 without further changes.

The 2025 State of Local Government Finance report is based on 186 responses from council leaders, chief executives, chief finance officers and cabinet members for finance in 150 English authorities.

It discovered that only one in 10 believe they have been adequately involved in reorganisation and just one in five think the timescales are deliverable.

Fewer than one in five believe there has been sufficient clarity.

Jonathan Carr-West, chief executive of the LGIU, commented: ‘At the end of last year, the Government was clear that devolution, reform of the local government finance system and public sector reform should go hand in hand.’

‘Our survey shows in quite stark detail that they are not currently aligned in any meaningful way.’

A Ministry of Housing, Communities and Local Government spokesperson said: 'Reorganisation is a tough choice but it is the right one to end the two-tier premium and create streamlined, more accountable local government.'

SIGN UP
For your free daily news bulletin
Highways jobs

Finance Officer - 12 month Fixed Term Contract

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Finance OfficerFixed Term, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Tutor

Essex County Council
Up to £30377.00 per annum + Pension
TutorPermanent, Part Time£30,377 per annum full time equivalent Location
Recuriter: Essex County Council

Principal Highway Engineer – Highway Condition Specialist

W.D.M. Limited
£65,000 - £80,000 based on experience
We are looking for a driven and experienced Professional Civil Engineer with a strong background in highways engineering to join our team. Bristol
Recuriter: W.D.M. Limited

Deputy Head of Pensions

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £62,451 dependents on experience
The Pensions Finance team has a variety of work shared in a small team giving the opportunity to get involved in every area. The team provides financial and investment support to Wandsworth Council’s £3bn pension fund, the Southwest Middlesex Cremato Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Adults Social Worker - Forensic Mental Health

Essex County Council
£37185 - £50081 per annum + Flexible Working
This position is open to Newly Qualified Social Worker's (NQSW) with relevant experience in Mental Health. The starting salary for NQSW's is £34,902 England, Essex, Wickford
Recuriter: Essex County Council
Linkedin Banner