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Local authority funding crisis could threaten essential statutory services to the most vulnerable, LGA warns

LOCAL authorities in England are facing a funding crisis which could threaten essential statutory services to the most vulnerable, the Local Government Association (LGA) has warned. 

The councils’ national body said local authorities were “being pushed to the financial brink” after four decades of funding cuts by the central government.

Thirty councils have had to be given Exceptional Financial Support (EFS) by the government to head off bankruptcy in 2025-26, said the LGA — up from 18 last year. 

The LGA said its latest survey of councils revealed that two in 10 “were not very or not at all confident that they had sufficient funding to deliver all their statutory duties in 2025-26, and this more than doubles to 5 in 10 in 2026-27.”

Councils are expected to face a “funding gap” of £8 billion by 2028-29.

LGA chairwoman Cllr Louise Gittins said: “Councils are the backbone of our country. We help those most in need to trying to secure a safe place to live and we strive to keep on top of road maintenance to keep our country moving.

“Every critical service a council provides needs to be funded properly. Without adequate funding the consequences for so many people who rely upon them could be devastating, but it will also be impossible for them to help the government achieve its reform and growth agenda.

“The time for sticking plasters and emergency government bailouts needs to come to an end.

“Councils stand ready to work with government to make real change happen for people in local communities. Only by working together as equal partners, can central and local government meet the fundamental long-term challenges we face as a country.”

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