Cross-Party Group Calls for Bold Action from Next Government to Address Funding Crisis
A cross-party coalition of the largest local authorities in England has called on the next government to urgently provide long-term funding alongside sweeping reforms to prevent local services from reaching breaking point.
The County Councils Network (CCN), which represents councils serving half of England’s population, issued a stark warning, stating that even well-managed councils are at risk of failure due to “extremely precarious” finances. The group emphasised that additional funding alone would not guarantee sustainability for local government services.
With a projected £2 billion funding shortfall over the next two years, the CCN is urging the next government to implement a “bold and brave” reform package targeting services under the greatest pressure, including adult social care, children’s services, and special educational needs.
Currently, 68% of the average council budget is consumed by these services, and the potential squeeze on unprotected government departments after the General Election could exacerbate the risk to local services.
In a joint statement, CCN leaders warned that without adequate funding and structural reforms, vital local services could reach a breaking point, affecting the lives of millions. “The next government must urgently set out how it will fund councils and adopt our ambitious agenda for reform,” they said.
The CCN has also published a manifesto outlining proposed reforms, including the introduction of price caps in the children’s residential care market to curb excessive costs, and the rebalancing of the special educational needs and disabilities (SEND) system.
Additionally, the group called for greater economic devolution, allowing councils more control over local taxes and key sectors such as skills, planning, and employment support. The manifesto stresses that services can only become sustainable through deep reforms and empowered local authorities.
Labour has expressed its commitment to deepen devolution, promising to provide councils with more powers to boost economic growth, while the Conservative Party has yet to comment.
