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Baner Club > Blog > Business > Growing expenses for social services and school transportation will put authorities in a £54 billion shortfall.
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Growing expenses for social services and school transportation will put authorities in a £54 billion shortfall.

Local authorities have warned that the growing costs of social care and school transportation will result in a £54 billion funding gap in councils across England if government assistance is not provided.

Last updated: 2024/10/03 at 7:44 AM
Published October 3, 2024
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According to a new analysis by the County Councils Network (CCN), the expense of adult social care, children’s services, and home-to-school transportation will result in a severe shortage of council members over the course of the next five years.
According to the report, 83% of the projected rise in service costs that councils will incur by 2030 may be attributed to these three sectors.

It concluded that 3% annual increases in council taxes may bring down the entire deficit to £38 billion over the next five years.

The government “cannot rely” on 3% rises, according to the CCN, which represents county and unitary councils, which account for 47% of the population. Councils would still need to find billions of dollars annually.

The CCN stated that this will result in a reduction of “undeliverable” services.

Over the last 10 years, council tax has increased annually; but, as a result of local authorities needing to prioritize financing for services with high demand, they have had to lower their spending on regular services including youth services, libraries, buses, and road maintenance.

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admin October 3, 2024 October 3, 2024
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