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 Engineer - Delivery Management (Flooding and Drainage)

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
To lead the operational delivery of drainage and flood risk interventions Derbyshire
Recuriter: Derbyshire County Council

Principal Surveyor

Durham County Council
Grade 14 £50,269 - £54,495
We are looking for an individual who has specialist knowledge of property and property processes and who has a professional, positive, enthusiastic an Durham
Recuriter: Durham County Council

SEN Class Teacher

Durham County Council
£32,916 - £51,048 + (SEN 1 £2,787)(SEN2 £5,497)
MFL/ Generic SEN Teacher Required to start as soon as possible   Croft Community School is a welcoming specialist school for pupils with Autism Spectr Stanley
Recuriter: Durham County Council

Class Teacher

Durham County Council
£32,916 - £51,048 + (SEN 1 £2,787)(SEN2 £5,497)
Technology Class Teacher Required to start as soon as possible.   Croft Community School is a welcoming specialist school for pupils with Autism Spect Stanley
Recuriter: Durham County Council

Business Services Co-ordination and Improvement Officer

Durham County Council
Grade 6 - £28,142- £31,022 (Pay award pending)
A fantastic opportunity has arisen within Business Services for a full-time Co-ordination and Improvement Officer, based at Annand House in Meadowfie Durham
Recuriter: Durham County Council
Linkedin Banner