Analysis of local authority finances by the Local Government Association (LGA) finds that councils face a funding gap of more than £2 billion next year, rising to £3.9 billion in 2026/27.
The LGA is urging ministers to work to stabilise the sector’s finances.
In a submission to the Treasury ahead of the 30 October fiscal event, the association warns that there is a growing risk of systemic financial failure among local authorities, after18 councils were left reliant on Exceptional Financial Support from the government in February to balance their books in 2024/25.
The LGA cites “soaring costs in children's social care due to rising complexity and placement expenses” as a key pressure facing local authorities.
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
