Title

FINANCE

Creating a sustainable future for local government finance is essential

The LGiU's annual State of Local Government Finance survey makes clear that councils cannot raise sufficient revenue to meet the needs of their communities, says Tracy Bingham.

© vintange tone / Shutterstock

© vintange tone / Shutterstock

Earlier this month, the LGiU published its 13th annual State of Local Government Finance survey.

The survey paints a picture of the pressures facing councils across England and sets out what many of us experience daily – rising demand for services, escalating costs and structural funding system challenges that continue to strain finances.

This year has already brought several significant developments to our funding system, including the first multi-year settlement in 10 years and the implementation of Fair Funding Review 2.0.

In this year's final settlement there were also some surprises – the Government's decision to underwrite 90% of historic special educational needs and disabilities deficits was welcomed and will go some way to easing one of, if not the most acute, financial burden for our sector.

These feel like first steps, taking us toward a more transparent and equitable distribution of resources. But the survey makes clear that councils cannot raise sufficient revenue to meet the needs of their communities. Social care, temporary accommodation and waste reform pressures continue to intensify, as does the use of exceptional financial support. What remained was the small set of levers available to balance budgets. These levers haven't changed in years and have been pulled repeatedly.

Our sector demonstrates time and time again, ingenuity, professionalism and unwavering commitment, but resilience alone cannot compensate for the limitations of a structurally constrained system. The survey's findings highlight where deeper and long-term solutions are needed and recommendations on how policy progresses.

I am grateful to LGiU for amplifying the lived experience of section 151 officers, chief executives and leaders. Creating a sustainable future for local government finance is essential and this report is an important step forward on that journey.

Tracy Bingham is executive director – resources and transformation (s151 officer) at South Derbyshire DC

FINANCE

Turning the dial on growth

By Mark Bretton | 01 May 2026

Delivering local growth has just got a lot harder, says Mark Bretton. But he believes Business Board leaders can bring value to local authorities, bypass the...

FINANCE

EXCLUSIVE: Herefordshire top hire revealed as Walker walks

By Dan Peters | 01 May 2026

A chief executive who struck a settlement after a row with the authority he used to run is expected to get Herefordshire Council’s top job, The MJ can reveal.

FINANCE

Making the shift

By Christine Marshall | 30 April 2026

As the sector gears up for a new wave of unitarisation, Christine Marshall reflects on the move from districts to a unitary council as executive director for...

FINANCE

Reeves' fiscal devolution must be ambitious and impactful

30 April 2026

Interim head of IPPR North, Mirte Boot, says chancellor Rachel Reeves has offered an opportunity that has been off the table for 30 years.

Tracy Bingham

Popular articles by Tracy Bingham