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

Senior Reward Consultant

Essex County Council
£60469.0000 - £71140.0000 per annum
Senior Reward ConsultantPermanent, Full Time£60,469.00 to £71,140.00 per annum Location
Recuriter: Essex County Council

Director of Resources

Dartmoor National Park Authority
£71,288 - £77,905 per annum
Dartmoor National Park Authority is the body that oversees the vibrant, living, working landscape and communities of Dartmoor National Park. Devon
Recuriter: Dartmoor National Park Authority

Business Relationship Manager

Essex County Council
£62461 - £73483 per annum + Flexible Working, Hybrid Working
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK. This vacancy England, Essex, Chelmsford
Recuriter: Essex County Council

Social Worker - Disabled Children's Service

North Yorkshire Council
£38,220 - £42,839 per annum
As a Social Worker within the Disabled Children’s Service, you will play a vital role in a supportive and experienced specialist team Selby, North Yorkshire
Recuriter: North Yorkshire Council

Children and Families Worker – Multi Agency Screening Team (MAST)

North Yorkshire Council
£32,578 - £35,570
You will work directly with children, young people, and their families. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner