Local services could reach “breaking point” unless the next government provides long-term funding and delivers “fundamental” reforms, the County Councils Network (CCN) said on Thursday.
CCN, which represents 37 county councils and unitary authorities in England, serving 47 percent of England’s population, said county authorities are facing a £2 billion funding gap over the next two years, or £1.1 billion when council tax rises and planned savings are taken into account.
The cross-party network warned that whoever wins the general election on July 4 will inherit an “extremely precarious” situation, and called on political parties to consider proposals such as introducing price caps on children’s services and giving county authorities more economic tools.
According to CCN, 68 percent of the average county authority budget was consumed by adult social care and children’s services, with its members overspending on children’s services budgets by £360 million last year, and there’s no sign of abating demand.
The network also said that the number of children in care in county areas has increased by 12 percent since 2019, and costs of delivering school transport for special educational needs pupils have doubled to £800 million in the same time frame.
Without increased funding, local authorities will have to “have an honest discussion with government and carefully consider what services can reasonably be delivered above the statutory minimum,” it warned.
In a “Manifesto for Counties,” the network called for “minimum four-year funding settlement for councils” in future spending reviews, and a “significant uplift in funding for councils over the Parliament.”
It also called for “ambitious and wide-ranging reforms” including introducing price caps on residential care for children, reforming the special educational needs and disabilities (SEND) system, reforming school transport for pupils with SEND, and extending and deepening economic devolution so councils have more tools to boost local economic productivity and prosperity.
In a statement backed by CCN’s Conservative Chairman Tim Oliver and vice chairmen including Conservative councillor Barry Lewis, Labour councillor Sam Corcoran, Liberal Democrat Jerry Roodhouse, and independent councillor Julian German, the network said: “Council services in county areas enhance the lives of 26 [million] people, yet those councils face a funding black hole of £2 [billion] over the next two years. Whoever wins power, the next government inherits a situation with council finances that are extremely precarious.
“Without extra funding and fundamental reform, highly valued local services could reach breaking point, and even well-run local authorities could struggle to balance the books. The next government must urgently set out how it will fund councils once in office, while also adopting our bold and brave agenda for reform,” it said.
The councillors said council services under the most pressure “will only become sustainable in the future if they are coupled with root and branch reform,” and councils “want to be key partners in this process.”
“With the public finances tight and non-protected government departments potentially facing a real-terms reduction, it is vital that all political parties focus on securing long-term growth. Our manifesto sets out how to empower county authorities through new economic powers and devolved funding streams so they can create the prosperity of the future to help fund local public services in the long-term,” councillors said.
Labour has said previously it plans to enhance economic devolution and will ask councils that do not have an existing devolution deal to begin preparing for “a new suite of powers.”
The Epoch Times has contacted the Conservative Party, the Liberal Democrats, and Reform UK for comment.
