A new analysis reveals that councils in England are facing a significant £9.3 billion funding gap by the 2026-27 fiscal year.
Research conducted by the Bennett Institute for Public Policy at Cambridge and Newcastle University found that 96% of England’s local authorities expect financial shortfalls in their medium-term strategies.
Only 14 out of 317 councils anticipate they will balance their budgets or achieve a surplus by this period’s end.
Co-author of the report, Andy Pike, emphasised that “radical change” is essential to protect local services from these financial pressures.
Four local government associations have issued a joint call for urgent funding reforms, advocating for the removal of siloed, short-term funding sources and requesting multi-year funding settlements.
They are also seeking clarity on the future of funds like the Household Support Fund, the Homelessness Prevention Grant, and the Shared Prosperity Fund.
Ann Carruthers, president of the Association of Directors of Environment, Economy, Planning and Transport (ADEPT), stressed the need for a sustainable funding model to support long-term planning for communities and the environment.
Highlighting a “pivotal” time for youth, Andy Smith, president of the Association of Directors of Children’s Services, urged the government to prioritize investment in young people.
Melanie Williams, president of the Association of Directors of Adult Social Services, called for a “sustainably funded plan” for adult social care, and Greg Fell, president of the Association of Directors of Public Health, emphasised the need for consistent, adequate funding and investment in a skilled workforce to improve health outcomes.
