Research by the Local Government Association (LGA) suggests a third of councils fear running out of funds for statutory services such as child protection within the next 3 years.
The study highlighted an overall funding gap of £3bn by 2020 with the position worsening with time with almost 2/3rds of councils believing funding will be insufficient by 2024/25.
The research was based on responses of 142 of 339 councils surveyed with 17% saying they were not confident that they will find the savings they need in the next 12 months to balance the books.
The report highlights the fact that between 2010 and 2020, councils will have lost 60p out of every £1 they had from central government to run local services. The next Spending Review will be make or break for vital local services and securing the financial sustainability of councils must be the top priority.
The LGA, which represents councils in England and Wales, is therefore calling for the next Prime Minister to prioritise local public services in the Spending Review and give councils urgent certainty about future funding, business rates retention and the fair funding review.
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