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

Director of Public Health

North Tyneside Metropolitan Borough Council
£105,467 pa
North Tyneside has ambitious plans for the people and places across the borough. North Tyneside, Tyne and Wear / Any Location
Recuriter: North Tyneside Metropolitan Borough Council

Principal Licensing Officer

Bromsgrove and Redditch Councils
£43,693 - £46,731 (Grade 9)
Worcestershire Regulatory Services (WRS) are recruiting to the post of Principal Licensing officer. Bromsgrove, Worcestershire
Recuriter: Bromsgrove and Redditch Councils

Employment Vetting Officer

Essex County Council
£26090.00 - £30693.00 per annum + pension
Employment Vetting OfficerFixed Term, Full Time£26,090 to £30,693 per annumLocation
Recuriter: Essex County Council

Quality Improvement Officer

Royal Borough of Greenwich
£34,416 - £35,448
Your primary role will be to provide administrative support to frontline staff. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Senior Support Worker

Sandwell Metropolitan Borough Council
Band D, SCP9 - 17 (£26,409 - £30,060) per annum
We have an exciting opportunity to join a bespoke service within adult services. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner