Displaying items by tag: local councils
Councils ‘on the brink’ offered a £600 million bailout
The Government has announced a £600 million bailout for local councils, primarily to support elderly care, in response to financial challenges faced by town halls. This emergency funding aims to prevent service cuts and potential bankruptcies. Councils are directed to focus the funding on urgent needs and reduce non-essential expenditures such as consultancy fees and diversity projects. The move follows alerts from over 40 Conservative backbenchers about the risk of increased council tax and reduced services. Financial struggles have already led to bankruptcy declarations from councils like Birmingham, Nottingham, Thurrock, and Woking. A survey reveals that nearly 20% of council leaders in England anticipate needing to implement austerity measures within the next two years. The bailout includes £500 million specifically for social care, and councils will also see a 4% increase in their core spending power. Additionally, £3 million is allocated for flood defence in vulnerable areas. See
Section 114 fear for 1 in 5 councils
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
Council costs warning as fostering places fall
A decline in available fostering places has led to local councils wasting substantial amounts of money, warns a carers' organisation. Capacity issues can force councils to place children in more costly residential homes, according to sector bodies, but the Government claims to be investing £27 million to improve fostering place availability. Official Ofsted statistics indicate that there were 72,770 approved mainstream fostering places in England as of 31 March, 8% less than on the same date in 2019. The decline is primarily due to an 11% reduction in the number of mainstream local authority households, down to 19,835. Meanwhile, the number of independent fostering agency households has risen by less than 1%, and 'family and friends' households have increased from 6,930 to 8,400. Foster Support CEO Jane Collins emphasised the importance of retaining foster carers, both for financial reasons and to maintain their experience and training. However, she noted that local authorities are struggling in this regard.
Private renters stuck in dangerous homes
Tenants who complain of dangerous or potentially deadly faults in privately rented homes are being let down by councils. When landlords fail to fix hazards - including serious faults that pose an immediate risk to health - councils have a legal duty to act. But the number of times councils use enforcement powers is far lower than the number of reports made. In the last five years 135,687 hazards were recorded, including 42,654 which posed an immediate risk to safety, but council action was only taken on 25,243 occasions, while less than 1% of the registered faults led to a prosecution. The housing charity Shelter said the whole system was ‘a car crash’. The private rented sector is home to 11 million people: many are young professionals who are close to buying, but there are also families and older people who will be renting for many years.