Annual poll of council leaders and top managers finds near-total collapse in confidence in their financial viability
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Nearly one in 10 councils in England have warned they will go bust in the next 12 months as authorities plan widespread cuts, above-inflation council tax rises and across-the-board increases to resident charges, a survey has revealed.
The Local Government Information Unit (LGIU) annual poll of local authority leaders and top managers reveals a near-total collapse in confidence in the financial viability of councils as they grapple with “desperate” pressures and shrinking budgets.
Nine per cent of councils (14 authorities) surveyed reported they were “likely” to declare effective bankruptcy in the next 12 months, with more than half saying they would go bust in the next five years without extra funding.
Rising need and costs in children’s services were the biggest drivers of financial instability in top-tier councils, with soaring homelessness bills the biggest risk factor for district councils.
Nine out of 10 councils plan to raise council tax, with the same proportion proposing to introduce or raise charges for services like garden waste disposal and parking. Nearly two-thirds plan service reductions, “meaning that services are getting more expensive just as they are being cut”.
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