A Local Government Association (LGA) survey reveals that about 20% of council leaders and executives in England anticipate possibly issuing Section 114 notices, reflecting an inability to balance budgets due to funding shortfalls. A projected £4 billion funding deficit over the next two years, necessary to maintain service levels, was not addressed in the recent Autumn Statement. Councils, facing the prospect of increasing council tax by up to 3%, are caught in a dilemma of balancing funding needs against the financial pressures on households. The survey found that half of the leaders doubted their ability to meet legal requirements next year, and almost two-thirds saw no Autumn Statement measures aiding their financial woes. The LGA points out a significant 27% decrease in councils' core spending power since 2010/11, worsened by the pandemic, growing service demands, and escalating costs. Immediate government intervention is needed. See
Section 114 fear for 1 in 5 councils
Written by David Fletcher 07 Dec 2023Additional Info
- Pray: for wisdom for our leaders and Government as they steward the limited resources. (Proverbs 3:9)
- More: www.local.gov.uk/about/news/section-114-fear-almost-1-5-council-leaders-and-chief-executives-after-cashless-autumn
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