Is your area at risk? Cash-strapped councils face going bust, putting children's services and bin collections in jeopardy

One in ten county councils in the UK are at risk of going bust and have called for emergency funds to protect vital services for children and maintain bin collections. Cash-strapped districts, town halls, and city councils have warned that budgets could be stretched by over £600 million, with children's services being the most vulnerable.

Running out of road

In a letter to ministers, councillors expressed their concerns about the financial situation, stating that they are "running out of road." Historically high overspends, driven by soaring inflation and increased demand for children's services, have put significant strain on council budgets.

A looming funding black hole

The County Councils Network has predicted that by 2026, councillors across England will face a funding shortfall of £4 billion. Almost half of the estimated £600 million additional spending is attributed to the needs of children in care. Without an urgent cash injection, even bin collections could face significant threats.

Uncertain financial outlook

Despite already planning to make over £2 billion worth of savings and service cuts over a three-year period, one in ten "well-managed" councils are unsure or not confident about balancing their books this year. The combination of overspending and future funding shortfalls has created an unsustainable financial situation.

Calls for emergency funding

Councillor Barry Lewis, CCN Vice Chair and Finance Spokesperson, emphasized the severity of the financial challenge facing county authorities. He highlighted the rising number of vulnerable children requiring care, post-pandemic, and the escalating costs associated with statutory care placements. County authorities are committed to reducing costs and have planned £2 billion in further savings, but the use of reserves to fill the funding shortfall is unsustainable. Councillor Lewis called for emergency funding for vulnerable children, similar to the resources provided for adult social care last year.

Is your area at risk? The financial stability of local councils is under threat, with children's services and bin collections on the line. Urgent action is needed to prevent further budget cuts and ensure the well-being of vulnerable children.