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

Advanced Teaching Assistant PLC

North Yorkshire Council
£26,824 - £29,064 per annum, pro rata
PLC is a county-wide, person-centred programme supporting young people aged 16+ with Education, Health and Care Plans (EHCPs). Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Practice Supervisor - Child Permanence and Family Reunification

North Yorkshire Council
£47,181 to £51,356 per annum pro rata + relocation support
Our team works with children and young people who are cared for by the Local Authority Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Speech and Language Therapist Manager

North Yorkshire Council
£47,181 to £51,356
Are you a qualified Speech and Language Therapist with a passion for service development and leadership? Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Chief Executive

West Surrey Council
c.£235,000
In April 2027, West Surrey Council will become one of England's largest new unitary authorities Surrey
Recuriter: West Surrey Council

Speech and Language Therapist

North Yorkshire Council
£38,220 to £42,839
Are you a passionate and qualified Speech and Language Therapist looking to make a real difference in the lives of children and young people? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner