Title

FINANCE

Half of workers unsure their council can avoid bankruptcy

Around 50% of local government workers are ‘unsure’ or ‘unconfident’ that their organisation is financially sustainable, a new study has revealed.

Around 50% of local government workers are ‘unsure' or ‘unconfident' that their organisation is financially sustainable, a new study has revealed.

A report by the audit, tax, and advisory firm Mazars found that council workers are either unsure (15%), not very confident (26%) or not at all confident (9%) that their organisation is financially sustainable.

Only 14% said they were very confident that their organisation was in a financially sustainable position.

Drawing on responses from almost 100 individuals, the firm's study, Beyond efficiency: what's left for local government?, found that 86% believe economic challenges present the biggest risk to their organisation, followed by workforce challenges (58%).

Mazars also urged local authorities to shift focus from short-term efficiencies to digital transformation. Only 12% of the workers who took part in the research described their organisation as a digital transformer, while 37% regard themselves as digital beginners.

Peter Cudlip, head of UK Public & Social Sector at Mazars, commented: ‘With local authorities worried about their financial stability, further immediate action is essential. However, to enable lasting improvement and allow real change to happen, a radical rethink in approach is needed.

‘Local authorities should turn their attention to transformation instead of short-term efficiency gains and prioritise digital skills and capabilities.'

FINANCE

Wandsworth's focus on outcomes per pound pays off

By Andrew Travers | 05 February 2026

Andrew Travers says Wandsworth’s place in the IMPOWER Top 10 is not an end in itself, but reinforces confidence in its outcomes per pound and ‘brilliant basi...

FINANCE

The Top 10 councils powering ahead on productivity

By Ann McGauran | 05 February 2026

Local government’s leadership may be dealing with a maelstrom of challenges, but the councils whose productivity performance has earned them a place in the I...

FINANCE

Why we need to support local leaders

By Steve Wilson | 05 February 2026

Councils are in danger of getting stuck in a cycle of short-term fixes and rising instability unless leadership is properly supported, as Steve Wilson explains.

FINANCE

Moving forwards and showcasing the true qualities of public sector leadership

By Frazer Thouard | 05 February 2026

Frazer Thouard outlines why the hugely successful Public Sector Challenge matters now more than ever.

Popular articles by William Eichler