Not enough money to run vital services, warn England’s councils
This first story is further grist to the mill and confirms the most severe financial crisis in my professional lifetime assailing large rural authorities. It tells us:
England’s largest councils have called for a massive injection of government funds after saying they no longer had sufficient money to run vital frontline services, from children’s centres to rural bus routes.
The Conservative-dominated County Councils Network (CCN), which represents authorities covering nearly half the country’s population, said its members expected to make an extra £900m of cuts next year to balance their budgets.
It said councils would need to make “unpalatable” cuts to respond to the soaring demand for children’s social services and adult social care.
Roads, libraries, Sure Start centres and youth clubs, bus route subsidies, recycling centres, and drug and alcohol services were likely to face deep cuts and closures, while services charges would be increased or introduced, the CCN said.
Cllr Nicholas Rushton, CCN’s finance spokesman and the Conservative leader of Leicestershire county council, said the government needed to intervene with extra funds if county councils were to avoid unpopular cutbacks in 2018-19.
He said: “County authorities are in a serious and extremely challenging financial position. The further planned funding cuts and continued escalation of costs outside of our control will make this bad situation even worse. There is not enough money today to run vital services.”
The growing financial pressure on budgets would increase the risk of councils moving to a “core offer”, meaning services would be stripped to the legal minimum.
Northamptonshire county council, which is technically insolvent, has said it will set out proposals for core-offer cuts at the end of this month to try to fill a £60m hole in its accounts.
Several county councils have reported financial dire straits, including Somerset and Lancashire, while others, such as East Sussex, have warned they face bankruptcy within three years unless they make drastic cuts.
Last winter the government intervened with extra funds for social care to prevent a revolt by backbench Tory MPs incensed by cuts to funding in rural areas.