Title

AUSTERITY

Councils warn of £2.5bn 'threat' to services

Two-thirds of surveyed councils said they either faced a ‘threat’ to or ‘extreme pressure’ on key service delivery over the next financial year, a poll has revealed.

Two-thirds of surveyed councils said they either faced a ‘threat' to or ‘extreme pressure' on key service delivery over the next financial year, a poll has revealed.

Survey data published by the Special Interest Group of Municipal Authorities (SIGOMA) showed members predicting an average inflationary pressure of £21.4m in 2023-24, which would amount to more than £1bn across its network.

For 2024-25, SIGOMA members predicted a slightly higher average pressure of £23.8m – £1.1bn across the network of 47 councils.

The overall pressure for members in the period covered by the survey was £2.5bn – £17.7m per council per year.

SIGOMA chair Sir Stephen Houghton said: ‘Our members are telling us that the threat to the key services that residents rely on is very real while many regeneration projects - central to levelling up - are already being curtailed if not cancelled outright.

‘The talk of further cuts to local government is extremely worrying – we know that it is the poorest in our communities who rely most on our services.'

He continued: ‘Our members predict that inflationary pressure will wipe more than £1bn off our budgets in real terms in each of the next two years – this following a decade of austerity and the Covid pandemic - both of which hit the most deprived areas hardest.

‘There are no meaningful efficiencies left and our preventative services have been cut to the bone.

'To stop a winter of extremely difficult decisions, the Government needs to act now to provide urgent support to the sector.'

AUSTERITY

Councils cutting services to pay for social care, think tank warns

By William Eichler | 08 April 2026

Councils are raiding reserves and slashing non-statutory services to keep pace with a ‘precarious’ social care system, according to The King’s Fund.

AUSTERITY

Shaping places that work for everyone

By Ann McGauran | 08 April 2026

Key Cities and architecture practice We Made That have set out five Rights to Place to ensure equitable distribution of resources, services and opportunities...

AUSTERITY

Whitehall looking to collaborate with councils on cohesion

By Dan Peters | 08 April 2026

Whitehall officials have vowed to work with local government on the development and implementation of their cross-government action plan to improve social co...

AUSTERITY

EXCLUSIVE: Council tax support localisation hits poorer areas

By Dan Peters | 08 April 2026

Poorer areas tend to offer less council tax support than more affluent areas more than a decade after the policy was localised, fresh analysis shared with Th...

Popular articles by William Eichler