Councils' 'financial blackhole'

Councils will face an ever-widening financial blackhole as the cost of provided basic services increases against a backdrop of budget cuts, the LGA has warned.

LGA: Councils in danger of 'losing some services'

We are in danger of losing entirely some services, with significant reductions right across the board.

This is a false economy which threatens to shunt additional costs onto the reactive parts of the public sector, particularly our hospitals, prisons and welfare system. There are large hidden costs associated with these cuts which will ultimately leave the taxpayer out of pocket ...

It is unfair to our residents to raise the expectation that trimming 43% from council funding will have no impact on the services they receive.

– Sir Merrick Cockell, LGA chairman

Council services that face squeeze as funding dries up

The body that represents councils in England and Wales has warned that cuts to budgets will result in them "prioritising spending on some services at the expense of others".

Services expected to be prioritised include:

  • Hospitals
  • Prisons
  • Welfare
  • Waste management

Services that could see cuts, or disappear altogether, include:

  • Leisure and cultural facilities
  • Road repairs
  • Home building

(Local Government Association)

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Report: Councils face ever-wider 'financial blackhole'

The financial blackhole facing local authorities is widening by £2.1 billion a year amid "counterproductive" cuts to their funding, a new report has warned.

Waste management is one of the areas where costs are expected to rise as councils face a narrowing budget
Waste management is one of the areas where costs are expected to rise as councils face a narrowing budget Credit: Rui Vieira/PA Archive

The Local Government Association (LGA) said the extra 10 percent cut for 2015/16 unveiled in the Spending Review, on top of previously announced cuts of 33 percent, would hit the delivery of public services, while some could be lost altogether.

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The LGA believes the costs of running vital services like social care, waste management and the police service will increase against a backdrop of cuts to funding.

This so-called financial blackhole will rise to £14.4 billion by 2020, the LGA said.