The Strain on Local Authority Services in England: A Comprehensive Overview

Introduction: The Scope and Importance of Local Authority Services

Local authorities in England provide over 800 essential services, ranging from waste collection and park maintenance to social care for both children and the elderly. These services are vital, touching nearly every aspect of residents’ lives. Between 2015-16 and 2023-24, spending on these services increased by £12.8 billion, rising from £60 billion to £72.8 billion—a 21% increase in real terms. The bulk of this spending, £10.3 billion, has gone into adult and children’s social care, which now accounts for 58% of total local authority expenditure, up from 53% in 2015-16. Despite this increase, the spending power per person remains 1% lower than in 2015-16, reflecting the pressures of central funding cuts and a growing population.

The Growing Complexity of Needs and Budget Challenges

The demand for services has grown faster than population increase alone can explain. External factors, such as inflationary pressures and housing shortages, have driven up the need for temporary accommodation and other support services. For instance, the demand for new adult social care plans has risen by 15%, driven by longer life expectancy and the increasing prevalence of multiple health conditions among the population. Melanie Williams, president of the Association of Directors of Adult Social Services, highlights that people are often requiring care at an earlier age due to frailty and complex needs. This has forced councils to prioritize urgent care over preventative measures, which could reduce long-term demand.

A Vicious Cycle: Cuts, Reactive Care, and the Cost of Prevention

The financial constraints have pushed councils into a reactive approach, focusing on addressing immediate needs rather than investing in preventative care. For example, the Public Health Grant, which funds preventative services, is expected to fall by £846 million (20.1%) in real terms by 2024-25. Meanwhile, funding for homelessness support services has increased by £1.57 billion, while money for preventative housing services has decreased by £0.64 billion. This shift from prevention to late intervention has created a vicious cycle, where councils are constantly "fighting fires" without addressing the root causes of demand. This not only increases costs in the long run but also undermines the overall effectiveness of service delivery.

The Crisis in SEND Funding: A Growing Burden on Councils

The demand for education, health, and care (EHC) plans for children with complex special educational needs has more than doubled since 2015-16, increasing by 140% to 576,000. However, government funding for special educational needs and disabilities (SEND) has not kept pace with this demand. As a result, many councils have consistently overspent their SEND budgets, leading to substantial deficits. While councils have been allowed to exceed their budgets until March 2026, they will soon need to draw on their reserves to cover these costs. One in three councils will face deficits they cannot cover once the temporary budget override ends, raising serious concerns about the sustainability of SEND services.

Cuts to Other Public Services: The Wider Impact on Communities

The increasing allocation of funds to social care and education has left little room for other essential services, many of which have faced real-terms cuts over the past decade. Libraries, parks, and cultural services have been particularly hard-hit, as councils seek to make savings. However, these services play a critical role in community wellbeing and can even help reduce the demand for social care in the long term. Melanie Williams warns that cutting these services could exacerbate the pressure on social care by depriving people of the support and opportunities they need to stay healthy and independent. "It’s no good me just providing care and support if somebody can’t go out and access a park or leisure activities," she says.

The Need for Reform and a Sustainable Funding Model

The current funding model for local authorities is unsustainable. Since 2018, seven councils have issued section 114 notices, indicating they are unable to balance their budgets, while 42 councils have received over £5 billion in exceptional financial support since 2020. A recent survey suggests that up to 44% of councils may issue section 114 notices within the next two years if the government does not provide further support. Sir Geoffrey Clifton-Brown, chair of the Committee of Public Accounts, emphasizes the need for systemic reform rather than short-term fixes. "Short-term support is a sticking plaster to the underlying pressures facing local authorities," he says. A cross-government approach is essential to ensure accountability, value for money, and a sustainable future for local government finance.

In conclusion, the strain on local authority services in England is a complex issue with no easy solutions. While increased spending on social care reflects the growing needs of the population, the lack of a sustainable funding model and the shift from prevention to reactive care threaten the long-term viability of these services. Without meaningful reforms, many councils will struggle to meet the needs of their communities, leaving vulnerable populations at risk and pushing local authorities to the brink of financial crisis.