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.'
