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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Head of Constitutional and Electoral Services

Redbridge London Borough Council
£89,037 - £92,538
This role will place you at the centre of political decision-making and governance in the Council. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Safety

Redbridge London Borough Council
Up to £103,893 inc. market supplement
Redbridge is one of the most dynamic and diverse boroughs in London. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Highways & Transport

Redbridge London Borough Council
£89,037 - £92,538
There is a lot going on in Redbridge. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Local Audit Office - Controller of Local Audit

Ministry for Housing, Communities and Local Government
£200,000 - £220,000
The Government is taking bold steps to overhaul the local audit system, leading the most transformational reform programme in over a decade Birmingham, Leeds
Recuriter: Ministry for Housing, Communities and Local Government
Linkedin Banner