While funding levels have risen over the last few years, budget-setting will be another hugely challenging task for many councils again next year.
Cllr Louise Gittins, Chair of the Local Government Association, which represents councils, said:
“It is good that government has acted on LGA calls to provide multi-year financial certainty to councils and a streamlined funding system. While funding levels have risen over the last few years, budget-setting will be another hugely challenging task for many councils again next year. An increase in overall funding remains needed to ensure the financial sustainability of councils and our local services.
“All councils need to be protected from real-terms cuts next year and have adequate funding to fully meet spiralling cost and demand pressures. Alongside a significant boost in resources, it is critical that government works with councils to reform key services, such as SEND and adult social care, and undertakes a cross-party review of options to improve the wider local government finance system.
“We remain concerned by the number of councils having to use unsustainable emergency bailouts which are a clear warning sign about the financial pressures facing local government. Unless sustainable solutions are found to the severe financial challenges facing local government, we anticipate more councils may need Exceptional Financial Support (EFS) in the future.”