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.

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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.