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“Councils need sustainable, long-term funding to better protect the services that people rely on, as they face rising demand and increasing costs to deliver them."

“We are pleased the Government has announced a significant funding package to tackle 90 per cent of the historic high-needs deficits which removes the immediate threat of insolvency for many councils. 

One in 10 councils with social care responsibilities and two thirds of district councils face real-term funding cuts this year (2026/27), the Local Government Association (LGA) is warning today. The LGA, which represents councils across England, said it is right that steps have been taken to reform the local government finance system, multi-year settlements, including for the Public Health Grant, and grant consolidation and simplification. Councils are at the heart of every national priority. Extra funding for children’s services and to reflect the growth in EHCPs and specialist provision and

"Councils are committed to using this funding to improve the lives of local people and tackle the root causes of poor health."

While funding levels have risen over the last few years, budget-setting will be another hugely challenging task for many councils again next year.

"While funding levels have increased in recent years, councils will be rightly anxious that today’s Budget does not provide the increase in funding they desperately need to ensure their financial sustainability, protect services, support local communities, and address national priorities."

Emergency government bailout agreements for councils are at risk of becoming “normalised” as costs continue to outstrip available resources and push many to the financial brink, the Local Government Association warns ahead of the Autumn Budget.  New analysis by the LGA ahead of the November 26 fiscal event reveals that councils across England are at risk of substantial budget overspends in 2025/26 across adult social care, children’s social care and homelessness services.  Councils are at the heart of every national priority from building homes and boosting inclusive growth to caring for

“This report provides further evidence that local government finances remain in a fragile position"

"Individual councils will need to know the implications and a transitional mechanism is crucial to avoid putting services at risk"

"It is positive that the Spending Review delivers on some key LGA asks."