Autumn Budget 2025 - CCN Submission

In the run-up to the 2025 Autumn Budget, we raised the alarm over the severe financial pressures facing county and rural unitary councils. We argue that rising demand for statutory services, escalating costs, and insufficient government funding have left many authorities in a precarious position.  

Our submission warns that without significant additional support, the stability of essential local services -  particularly social care and Special Educational Needs and Disabilities (SEND) - is at risk. The submission emphasises that the Fair Funding Review, SEND deficits and National Living Wage pressures all disproportionately affect county areas, compounding long‑standing funding inequalities.

We call for urgent intervention to avoid reductions in services, real‑terms funding cuts, and widespread financial instability across member councils.

This submission highlights the challenges faced by county and unitary councils:

• County and rural unitary councils face below‑average increases in Core Spending Power, with 90% of increases coming from maximum council tax rises of 5%.  
  ‍
• Without these maximum council tax increases, up to 33 CCN’s 38 councils would see real‑terms funding reductions.
  ‍
• SEND deficits are projected to reach £2.7bn in CCN areas by March 2026, risking insolvency for up to 18 councils if the statutory override ends.  
  ‍
• Last year’s National Living Wage rise added £454m of unfunded pressures for county and rural unitary councils.  
  ‍
• Local government reorganisation could create up to £3.7bn in additional costs, if areas are split into multiple unitary councils.

Recommendations to the Treasury include:

• Provide significant additional funding at the Autumn Budget, reducing dependency on council tax rises to fund increases in Core Spending Power.
  ‍
• Set out a national SEND plan that will write off deficits and allow councils to plan their budgets with greater certainty.  
  ‍
• Fully fund National Living Wage increases. maintain the previously-set direction of travel on local government reorganisation, with a commitment to create new unitaries with minimum populations of 500,000.