Finance

Seven councils permitted to hike council tax above 5% cap

11/02/2026
Seven local authorities will be allowed to increase their council tax above the usual 5% cap, the Government has announced.

Finance News

Reform UK budget defeated

09/02/2026

A budget proposing a 3.89% council tax increase by Warwickshire CC's minority Reform UK administration has been defeated by rival parties.

Worcestershire CC issues bankruptcy warning

09/02/2026

Reform UK-run Worcestershire CC could be forced to declare effective bankruptcy if the Government does not provide it with extra support, leader warns.

Scottish council leaders raise Local Growth Fund concerns

06/02/2026

Council leaders in Scotland have voiced strong concerns over the UK Government’s approach to the new Local Growth Fund.

City council requests £15m exceptional financial support

06/02/2026

Brighton & Hove City Council has requested £15m of exceptional financial support (EFS) from the Ministry of Housing, Communities and Local Government.

Cross-party talks after Bedford budget rejected

05/02/2026

The leader of Bedford BC's Conservative minority administration has pledged to ‘keep working with other parties' after its ‘sound' budget was rejected.

Birmingham City Council no longer ‘bankrupt’, says leader

04/02/2026

Birmingham City Council is no longer 'bankrupt', says the local authority’s leader.

London schools face loosing £45m as pupil numbers plunge

03/02/2026

Falling pupil numbers in London risk undermining school standards and forcing cuts to staff and programmes, according to a new London Councils report.

Scottish councils face £1bn budget gap

29/01/2026

The cost of delivering services in Scotland is rising faster than available funding which ‘risks the financial sustainability’ of councils, auditors warn.

Auditor urges Welsh councils to improve capital plans

29/01/2026

It is not always clear how capital plans are helping councils in Wales to deliver their priorities, auditors have concluded.

£30m coastal resilience funding announced

28/01/2026

Councils are set to benefit from a £30m Government package aimed at helping communities adapt to accelerating coastal erosion and climate impacts.

Welsh Government funding boost for councils

23/01/2026

The Welsh Government has confirmed it will make £112.8m in additional funding available to local government in its final budget for 2026-27.

County councils warn of service cuts and redundancies

23/01/2026

Millions of people in England’s county areas could see cuts to services as Government funding is set to cover just 2p of every £1 in rising costs, CCN warns.

Trafford bid for £20m EFS

16/01/2026

Trafford Council is to ask Whitehall for more than £20m in exceptional financial support (EFS) after its deficit increased by £24m under the fair funding review.

Business rates surge puts hundreds of pubs at risk

13/01/2026

Up to six hospitality venues could close each day in 2026 if no intervention is introduced to address upcoming business rates increases, researchers reveal.

Districts remain in dark on funding

12/01/2026

Funding certainty lingers on for finance chiefs in district councils, despite the publication of the provisional local government finance settlement.

MHCLG faces delays in resolving local audit crisis

12/01/2026

Resolving the crisis in local audit is taking longer than expected, the Ministry for Housing, Communities and Local Government (MHCLG) has admitted.

'High probability' section 114 warning for Starmer

09/01/2026

North Somerset Council's leader has warned Prime Minister Keir Starmer there is a ‘high probability' of the authority issuing a section 114 notice this year.

Scottish regions awarded £140m to drive local growth

08/01/2026

Five Scottish regions are to receive £140m of Government funding to support local growth initiatives.

Reform-led Derbyshire council eyes 5% council tax hike

06/01/2026

Reform-led Derbyshire County Council is considering a council tax increase of up to 5% as it seeks to close a significant budget gap.

Real-terms funding cuts for almost half of councils

18/12/2025

Almost half of councils will see funding fall in real terms under the local government finance settlement, according to analysis by the Institute for Fiscal Studies (IFS).

Government announces funding boost for most deprived councils

18/12/2025

The Government has revealed details of its multi-year funding deal for local government that aims to shift funding to England’s most deprived areas.

Public Health Grant 'must keep pace with inflation', LGA chair says

18/12/2025

Cllr Dr Wendy Taylor, chair of the LGA’s Health and Wellbeing Committee, has welcomed a multi-year funding settlement for the Public Health Grant but warned it must keep pace with inflation and rising demand to deliver on prevention and reduce pressure on health and social care.

Tax referendum cap lifted for six councils

17/12/2025

The council tax referendum cap will be temporarily removed for six authorities, the Government has announced today as part of the provisional local government finance settlement.

Dudley Council secures £200k in debt recovery action

15/12/2025

Dudley Council has won back over £200,000 following a successful debt recovery case.

Council faces £2m deficit due to ‘continuing housing crisis’

09/12/2025

Worthing Borough Council says pressure meeting a ‘continuing housing crisis’ in the area means it is facing a £2.1m budget deficit this year, forcing it to ask the Government for emergency financial support.

Further evidence emerges around councils’ early years underspend

08/12/2025

Further evidence has emerged that councils are either holding back or diverting money that is earmarked for the early years sector.

Auditor sounds alarm over Shropshire finances

01/12/2025

Shropshire Council has been issued with a rare statutory recommendation by its external auditor.

Doncaster gives green light to £57m airport loan

28/11/2025

City of Doncaster Council has approved a £57m borrowing measure to help reopen Doncaster Sheffield Airport.

Rental arrears owed to councils soar 55% in six years

25/11/2025

Rental arrears owed to local authorities have climbed by 55% since 2019, according to a new analysis.

WLGA: Provisional funding settlement ‘does not come close’

25/11/2025

Council leaders across Wales have warned that the provisional 2026-27 local government settlement ‘does not come close’ to matching financial pressures.

Fair funding review labelled a 'sham'

21/11/2025

The fair funding review has been labelled a ‘sham’ by rural councils following its publication today.

‘Postcode lottery’ in rent support has cut tenants’ incomes, warns IFS

21/11/2025

Renters impacted by frozen local housing allowance (LHA) rates have seen a decrease in their disposable income by nearly £1,500 per year, researchers say.

Districts take hit in fair funding review

20/11/2025

District councils have been told their finances will take a hit as the fair funding review is published today.

Reed lobbies Treasury over fiscal devolution

13/11/2025

Local government secretary Steve Reed has made the case to the Treasury for devolving fiscal powers ahead of the Budget.

Worcestershire warned over special educational needs spending

11/11/2025

Worcestershire CC has been handed a financial warning by auditors concerned its spending on children with special educational needs is ‘out of control'.

Councils lack confidence in Crisis and Resilience Fund

31/10/2025

A report has confirmed that 98% of councils do not think the Crisis and Resilience Fund (CRF) will fulfil local needs.

Fears over fair funding tax formula

30/10/2025

Proposals around council tax in the fair funding review could actually have a detrimental impact on more deprived areas of England, councils have warned.

London councils face ‘eye-watering’ £4bn funding gap

30/10/2025

London’s town halls are warning of 'inevitable' service cuts and growing financial crisis as new analysis reveals a £4bn funding gap.

Late change to fair funding review expected

29/10/2025

Urban councils are expecting a ‘perverse' late change to proposed funding reform they fear would cost them hundreds of millions of pounds.

Woking to get £500m bailout as Surrey split in two

28/10/2025

Reorganisation frontrunner Surrey will have its 12 councils replaced by two unitaries, with £500m of Woking BC's debts written off, The MJ understands.

Major consultation to reform council tax in Scotland launched

27/10/2025

The Scottish Government and COSLA have launched a major consultation on the future of council tax.

DCN: Deprivation key determinant for spending

21/10/2025

Unitaries with a population over 350,000 tend to spend more per resident on services but are also more likely to run into financial difficulties, DCN shows

‘Outdated and harmful’: Council bailiff use soars 30%

20/10/2025

The use of bailiffs by local authorities in England and Wales has surged by 30% in just two years, according to new analysis from Debt Justice.

Reorganisation financial risk warning

20/10/2025

Local government reorganisation has been highlighted as a key concern by the Public Accounts Committee.

Councillors to reimburse £110,000 allowance overpayments

17/10/2025

Oldham councillors have been overpaid in allowances by more than £100,000, a report has revealed.

LGA: Costs pushing many to financial brink

17/10/2025

Emergency government bailout agreements for councils are at risk of becoming ‘normalised’ as costs outstrip available resources and push many to the financial brink, the Local Government Association (LGA) has warned ahead of the Budget.

SOLACE: Funding fails to offset the years of lost cash, claims president

16/10/2025

Central government funding for regeneration is positive but ‘can only go so far in offsetting the long years of lost funding', Solace president Robin Tuddenham has claimed.

England’s councils face poorest finances since 2010

16/10/2025

Local authorities in England are set to be poorer by the end of this parliament than they were in 2010, according the Institute for Government (IfG).

New unitaries in the south to cost over £12m

16/10/2025

The creation of new unitary authorities in the South of England is due to cost councils millions of pounds.

Councils urged to use £127bn procurement spend to deliver more

15/10/2025

English councils are being urged to use their £127bn annual procurement spend to deliver wider economic, social, and environmental benefits.

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