Councils in England are facing a £7 billion funding black hole within three years, according to new LGA analysis.
The gap equates to more than the current council spend on roads, transport, homelessness and housing services combined, and it risks leaving residents facing longer waits for services, and cuts to road maintenance, libraries, parks and waste collections.
By 2028/29, councils will face extra cost pressures equivalent to 22 per cent of their current spending just to stand still, according to the analysis.
Costs are being driven by rising demand for homelessness support, children’s services, adult social care and home-to-school transport, and new national requirements such as Simpler Recycling and the UK Emissions Trading Scheme.
The LGA is calling on new Prime Minister Andy Burnham and his government to lay out a new path for local services that is not reliant on council tax rises, short-term fixes and unsustainable emergency bailout arrangements. Government also needs to commit to deeper, long-term reform of local government finance, including a cross-party review of council tax, business rates retention and other funding sources.
An LGA spokesperson said: “Councils want to get on with supporting people, boosting local economies and delivering local priorities. But they can only do that with the long-term funding they need and public service reform.”