Local councils are being pushed towards the “financial brink” as they face a multibillion-pound funding gap, a bombshell report warns. Almost three in four Town Halls in England say they are struggling to balance the books.
The Local Government Association (LGA) said this week’s Spending Review will be critical for the future of local services, with councils in England facing a funding gap of more than £8 billion by 2028/29. Six councils – Birmingham, Croydon, Woking, Nottingham, Thurrock and Slough – have effectively declared bankruptcy in recent years. Enfield, Worcestershire, West Berkshire, Trafford, Barnet, Solihull, and Halton are among a number struggling financially.
The LGA’s report said financial pressures risk “severely limiting” councils’ ability to deliver on the Government’s reform and growth agenda.
The LGA acknowledged the Government has provided extra money for councils this year, which it said will help meet some of the cost and demand pressures they face in adult and children’s social care, homelessness prevention, and support for children and young people with special educational needs and disabilities.
But it warned “significant pressure” remains, with the LGA survey finding two in 10 responding councils are not very or not at all confident they have sufficient funding to deliver all their statutory duties in 2025/26, and this more than doubles to five in 10 in 2026/27.
Louise Gittins, who chairs the LGA, said: “Every day across the country, our dedicated councillors and officers work tirelessly to ensure our most vulnerable are kept safe. We help get our children to school, and work with parents to gain the extra help their child needs.
“We help those most in need trying to secure a safe place to live, and we strive to keep on top of road maintenance to keep our country moving.
“Every critical service a council provides needs to be funded properly. Without adequate funding the consequences for so many people who rely upon them could be devastating, but it will also be impossible for them to help the Government achieve its reform and growth agenda.
“The time for sticking plasters and emergency government bailouts needs to come to an end.”
Unite national officer Clare Keogh said: “Council finances are already on a precipice after a decade of cuts – they cannot survive any further deterioration.
“Unite’s members will not tolerate any attempt by government to cut investment in council services, or any attacks on their jobs, pay and conditions.
“Unite will back our members in any fight to protect their workplace and their communities from cuts to local government finances.”
