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

Education Access Specialist

Essex County Council
£42761.0000 - £50307.0000 per annum
Education Access SpecialistPermanent, Full Time£42,761 to £50,307 per annumLocation
Recuriter: Essex County Council

Talent Acquisition Lead (Manger)

Sandwell Metropolitan Borough Council
Band I SCP 44-47 (£55,609 - £59,025 per annum)
Ready to shape the future of talent acquisition in local government and make a real impact? Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Talent Acquisition Advisor

Sandwell Metropolitan Borough Council
Band G SCP 32-37 (£42,839 - £48,226 per annum)
Ready to shape the future of talent acquisition in local government and make a real impact? Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Payroll Lead (Team Leader)

Sandwell Metropolitan Borough Council
Band F, SCP 26-31 (£37,280 - £41,771 per annum
Ready to work together and make a real difference? Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Building Control Inspector - Colchester City Council

Essex County Council
Negotiable
Building Control Inspector - Colchester City CouncilPermanent, Full TimeCompetitive salary with additional Market Forces SupplementLocation
Recuriter: Essex County Council
Linkedin Banner