English councils face terrifying £6.2bn funding black hole with more at risk of bankruptcy
Several councils have gone bankrupt in recent years - and more are at risk.
Councils in England face a funding gap of £6.2billion over the next two years, the Local Government Association has warned.
This is being driven by rising cost and demand pressures to provide adult social care, children's services, homelessness support and home-to-school transport for children with special educational needs and disabilities.
Councillor Kevin Bentley, senior vice chairman of the LGA, said: "We all rely on local government to keep our streets clean, collect our bins, fix our potholes, build more homes, create jobs, keep children safe and support people of all ages to live fulfilling lives.
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"However, a funding gap facing local services of more than £6 billion over the next two years - fuelled by rising cost and demand pressures - means a chasm will continue to grow between what people and their communities need and want from their councils and what councils can deliver.”
Two-thirds of councils have already had to make cutbacks to local neighbourhood services this year - including waste collections, road repairs, library and leisure services – as they struggle to plug funding gaps.
The LGA is calling on all political parties to commit to a significant and sustained increase in funding for councils in the next Spending Review.
Mr Bentley said: "On July 5, the next government will be faced with many challenges, whether it is building more affordable housing, improving care for adults and children, reducing homelessness, boosting inclusive growth or tackling climate change.
"Local government’s offer to the next government is huge. Respect us, trust us and fund us. By working together as equal partners, we can meet the fundamental long-term challenges facing our communities.”
Nottingham, Birmingham and Woking councils all went bust in 2023. They followed Thurrock and Croydon in 2022.
Half of councils have warned of effective bankruptcy within five years without reform.
