Councils across the country find themselves in a turbulent financial position. Since 2021 six local authorities have declared themselves effectively bankrupt, with a raft of councils warning they may have to do the same. Exclusive polling of English councillors by New Statesman Spotlight revealed that a quarter of councillors believe their council will soon go bankrupt.
Amid dramatic cuts to the funding they receive from central government, councils continue to face increasing demand for statutory services (the services they are legally required to provide). These include adults and children’s social care and the provision of temporary accommodation and homelessness support. Central government grant funding for councils dropped by 40 per cent in real terms between 2009-10 and 2019-20 (from £46.5bn to £28bn).
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