Councils warn Chancellor that support for most vulnerable is under threat

Groups representing all 350 local authorities across England and Wales have warned the Chancellor that any funding reductions for councils would be "disastrous".

A letter sent to Rachel Reeves ahead of the Budget - and seen by ITV News - calls for "immediate action to stabilise council finances and protect vital services" - with a stark warning of the alternative.

"It is clear to us that without this action the ability of councils to deliver crucial services, including supporting some of the most vulnerable in society... is under threat."

The letter, signed by a number of organisations, including the Local Government Association and the County Councils Network, claims councils have faced a "perfect financial storm".

According to the document, the LGA has drawn up analysis showing that English councils face a funding gap of £2.3 billion in 2025/26, rising to £3.9 billion in 2026/27 and then £6.2 billion after that. It warns that councils are increasingly reliant on their financial reserves to balance budgets.

They are urging Reeves to deliver a "significant and sustained increase" in funding, particularly into adult and children's social care, special needs, home to school transport and temporary accommodation.

"We do not underestimate the difficult decisions you will have to take in your first Budget," it said. "But stabilising the local government sector financially will not only protect key services, it will also provide a return on investment to the tax-payer, while improving outcomes for the people and places councils serve."

The letter highlights particular areas where financial pressures have intensified, including the placement costs in children's social care (which has risen in real-terms by 25.7 per cent since 2019/20), rising demand in adult social care and a rise in homelessness.

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