More than a third of councils face financial failure

08 January 2019

More than a third of councils in England are at risk of financial failure in the next decade, with one in five on track to reach breaking point in the next three years, a new analysis has found.

A report from Grant Thornton found the most vulnerable councils are London boroughs, with 78% (25) forecast to crash by 2028, while half of unitary authorities and metropolitan councils are expected to be at risk of financial collapse in the next decade.

Overall, fewer district councils are set to become at risk the next 10 years, most likely due to the fact they don’t have statutory responsibility for demand-led social care services - the largest financial strain for councils.

The new analysis comes after a turbulent year exposed the acute failure of many council finances, as authorities struggle under the pressure caused by budget cuts and the rising demand for social care.

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