Martin Ford 05 June 2018

Three-quarters of councils facing financial crisis next year warn leaders

Three-quarters of senior officers expect austerity to claim more victims in the coming year, while a third are pessimistic about balancing savings with protecting frontline services in years to come.

PwC’s annual survey, The Local State We’re In, surveyed 81 local authority chief executives, finance directors and elected council leaders and 2,001 members of the public. It found a surge in respondents expecting a council to fall into financial crisis this year, at 74% compared to 54% in 2017.

While 72% of council respondents remained confident of delivering savings next year, 33% expressed fears that they cannot deliver savings and maintain service delivery over the coming three years, rising to 81% over the next five years.

Jonathan House, PwC’s local government leader, said: ‘There’s some realism from a number of council leaders that the scale of the demand challenge is still rising, while resources are strained.

‘The onus is on them to grow their local area and work even more closely with other public sector partners and service providers.’

He added: ‘While local councils have done well against an ongoing course of challenges, the cliff edge for some is getting ever closer.’

The survey also revealed high hopes for digital technology, with nine in 10 respondents expecting it will enable them to engage communities in new ways, while 80% expect digital to improve service delivery.

However, almost two-thirds (62%) of the public polled had not interacted with their council digitally in the past month and 20% are not aware of any council services being available digitally, showing little change from last year.

Confidence in devolution appears to have slumped, with just 13% of those polled believing their council will have more powers and responsibilities by 2022, compared with one in three in 2015.

Almost three-quarters (74%) put it down to the mayoral model, with 73% attribute it to local political relationships.

Visit The MJ (£) to read PWC's piece on how technology can help secure the future for local authorities.

SIGN UP
For your free daily news bulletin
Highways jobs

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Are you an experienced, motivated leader with a passion for improving outcomes for children and young people? We’re looking for someone who can inspir Durham
Recuriter: Durham County Council

Social Worker, Connecting Families Team

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £44,075 - £48,226 (Post-Progression)
Connecting families are a team within the Children in Care service in Durham. The team support families of children who are subject to a Section 31 Ca Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
  Do you want a new challenge?  An opportunity to develop your career in HR or try something new? If so, come and join our team. The post is full tim Spennymoor
Recuriter: Durham County Council

Support Officer

Durham County Council
Grade 6 £28,142 - £31,022
WHAT IS INVOLVED?   Do you want a role where your organisation skills make a real difference in local communities? Join our Newly remodelled Local Net Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,800 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council
Linkedin Banner