UK councils playing


A BBC investigation has shown that UK councils face a £3 billion black hole in their budgets as they emerge from the coronavirus pandemic.

The government says it has handed councils £12 billion during the pandemic, but because many as ten councils have needs to ask to borrow £300 million of emergency money from the government to plug financial holes.

As due to the funding shortfall, some local authorities were struggling to execute statutory duties and were vulnerable to bankruptcy.

Analysing 170 upper-tier and single tier councils in the united kingdom the BBC Shared Data Unit found that UK local authorities intend to make at least £1.7 billion worth of savings within the 2021-22 financial year whilst using more than £500 million price of reserves to balance the books. Furthermore, a quarter of these savings – some £434 million – is going to be produced in adult social care departments, which provide support to the elderly and vulnerable.

Despite making the cuts, the BBC reports that local authorities predict a £3 billion shortfall within their budgets by 2023-24. Nearly 60 percent of councils in England have risen council tax by the new statutory maximum of 4.99 per cent to pay for losses, a rise of about £100 on a yearly Band D bill in many areas.

Sharon Taylor, a Labour councillor who chairs the Local Government Association's resources board, said the pandemic had highlighted an existing funding crisis caused by a reduction in central government grants – an autumn as high as 70 percent over 10 years occasionally.