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.'