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

Chief Quality Officer

Alternative Futures Group
£150,892 plus car allowance (£8,153-£10,192)
At Alternative Futures Group, we believe quality is not measured by processes alone. It is measured by the difference we make to people's lives. Hybrid / North West
Recuriter: Alternative Futures Group

Procurement Assistant Manager - Part Time

Essex County Council
£24681.0000 - £29037.0000 per annum
Procurement Assistant ManagerFixed Term, up to 18 months (March 2028) Part Time, 25 hours per weekUp to £ 29,037 per annum pro-rata Location
Recuriter: Essex County Council

Procurement Assistant Manager - Full Time

Essex County Council
£36529.00 - £42976.0000 per annum
Procurement Assistant Manager - Full TimeFixed Term, up to 18 Months (March 2028) Full Time, 37 Hours Per WeekUp to £42,976 per annum plus Flexible Wo England, Essex, Chelmsford
Recuriter: Essex County Council

Youth Justice Practitioner

Essex County Council
£38487.0000 - £51834.0000 per annum
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.Here in Essex, England, Essex, Epping
Recuriter: Essex County Council

Part Time Learning Support Assistant

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Learning Support AssistantPermanent, Part Time£25,959 Per Annum, Full Time EquivalentLocation
Recuriter: Essex County Council
Linkedin Banner