Title

FINANCE

Councils face £10bn funding 'black hole'

Councils could be forced to cut billions from social care services due to a £10bn 'coronavirus black hole,' Labour has warned today.

Councils could be forced to cut billions from social care services due to a £10bn 'coronavirus black hole,' Labour has warned today.

The analysis, based on 2019/20 budget estimates, warned that local authorities may need to cut adult social care by £3.5bn.

There would also have to be £2bn cuts to children's social care and £700m cuts from public health budgets, Labour said.

Labour's shadow local government secretary, Steve Reed, said: 'Local authorities are the biggest funders of social care in England so when the Government promised to stand behind councils through this crisis Labour supported them.

'But now ministers are breaking that promise, leaving councils with a £10bn black hole forcing 21% cuts across the board.

'Unless the Government drops those plans the frontline heroes we're cheering today will lose their jobs tomorrow and the equivalent of 225,000 frail and frightened older people and vulnerable adults will lose the support they rely on.

'That would be a catastrophe for social care, disastrous for those who lose support as providers are forced out of business, and would, once again, fail the very people putting their lives on the line to get us through this crisis.'

Click here for an analysis of the impact of coronavirus on local government finance

FINANCE

Ofsted set to punish councils for unregistered children's homes

By Joe Lepper | 03 July 2026

Ofsted is looking to use future inspections to penalise councils that use illegal unregistered children’s care homes.

FINANCE

LGA warns of £7bn funding black hole for sector

By Paul Marinko | 03 July 2026

The Local Government Association (LGA) has thrown down the gauntlet to a likely Burnham-led government with warnings the sector faces a £7bn funding black hole.

FINANCE

Should health, care and local government departments merge?

By Christopher Exeter | 03 July 2026

With Andy Burnham poised to become Prime Minister and launch what could be a radical restructure of public services, Christopher Exeter looks back a hundred ...

FINANCE

Preparing for the next food fight

By Vic Harper | 02 July 2026

Council leaders should use the Crisis and Resilience Fund to lock in prevention before the next food crisis arrives, writes Vic Harper.

Popular articles by Laura Sharman