Section 114 fears mount for local council leaders

The survey results from the Local Government Association (LGA) come as the industry body suggests councils in England face a £4bn funding gap over the next two years just to keep services standing. Despite this, the Autumn Statement failed to provide the additional funding needed to protect services from further cuts.  

And, while councils will be able to increase general council tax by between three and five percent in 2024/25 – depending on whether they have social care responsibilities – they continue to face the tough choice about whether to increase council tax bills when they’re acutely aware of the burden that it could place on some households.  

The survey from the LGA also suggests half of councils in England are not confident they’ll have enough funding to fulfil their legal duties in the next financial year, while nearly two thirds said there were no announcements in the Autumn statement they thought would help them deal with their council’s financial position.  

In response, the industry body has said the government needs to use the forthcoming provisional Local Government Finance Settlement to provide councils with sufficient resources to set balanced budgets next year without having to make drastic cuts to services.  

Its chair, Councilor Shaun Davies said: “The lack of funding for local services in the Autumn Statement has left councils facing a growing financial crisis. 

“No council is immune to the risk of running into financial difficulty. As our worrying survey shows, many now face the prospect of being unable to meet their legal duty to set a balanced budget and having Section 114 reports issued. 

“Local government is the fabric of our country, with councils providing hundreds of services that our communities rely on every single day. For many people, these services are a lifeline. 

“If councils cannot thrive then our communities cannot thrive. If social care services that councils provide cannot cope with demand, then pressure on the NHS will grow further. If council housing teams can’t succeed, then all of our hopes for new homes will not succeed.

“While councils have worked hard to reduce costs, find efficiencies and transform services, the easy savings have long since gone. The government urgently needs to act to address the acute financial challenges faced by councils.”