Today the Local Government Association has released a new survey which reveals that one in three councils fear they will run out funding for statutory services by 2022/23.
This follows on from the County Councils Network’s own research featuring analysis from PwC on the funding challenge facing local authorities over the next six years – the work showed that local authorities face a £51.8bn funding black hole over the next six years.
CCN welcomes the LGA’s calls for emergency funding for councils next year – and for clarity on some of the major funding streams for councils.
Below, CCN responds to today’s research:
Cllr Nick Rushton, County Councils Network finance spokesman and leader of Leicestershire County Council, said:
“Today’s research is another stark example of the challenges facing local government over the coming years, and the impact of the uncertainty surrounding the Spending Review. It follows on from the County Councils Network’s own independent research by PwC, which showed that all councils face severe funding challenges over the next six years – with county authorities closer to than most to the financial cliff edge, with many moving towards providing a statutory ‘core offer’.
“Councils need immediate financial certainty from the incoming Prime Minister. If a full three-year Spending Review is unable to be delivered owing to Brexit uncertainty, County leaders have been calling for an emergency injection of funding for local authorities next year, alongside a commitment to publish the outcome of the fair funding review.
“We welcome the Local Government Association’s calls for extra clarity and we urge the new government to take action to ensure that local services are protected next year, with a commitment to longer term sustainable and fair funding.”