The National Audit Office has today (8 March 2018) published a new report: Financial sustainability of local authorities 2018
The report syays that the financial health of local authorities across England is getting worse, and highlights the news that despite greater freedoms to increase council tax bills and one-off short-term funds from government, local authorities are struggling to juggle higher demands and cost pressures against significant central government funding cuts of nearly 50% since 2010-111.
Many local authorities are relying on using their savings to fund local services and are overspending on services, which is not financially sustainable. The report goes on to show that if local authorities with social care responsibilities keep using their reserves at current rates, one in ten could have exhausted them within three years.
The report can be found at https://www.nao.org.uk/press-release/financial-sustainability-of-local-authorities-2018/
This report reviews developments in the sector and examines whether the DfE, along with other departments with responsibility for local services, understands the impact of funding reductions on the financial and service sustainability of local authorities.