"Cost and demand pressures are unrelenting, particularly in key demand-led services such as children's social care, adult social care, homelessness and home-to-school transport for children with special educational needs (Send). They added: Councils need a significant increase in overall funding to stem the emerging risk of system-wide financial failure and to ensure that councils can meet demand for the vital services needed by their communities."
"We are often accused of crying wolf, but local authorities are reaching breaking point now, he said. The money's not there. There are bound to be some more councils that cannot meet their obligations."
Local authorities in England and Wales report finances at breaking point and expect more councils to face bankruptcy while awaiting government funding. Council leaders foresee changes to annual funding arrangements causing steep cuts that will prevent many councils from balancing budgets and providing basic services. Twenty-nine councils have already required special government loans to meet obligations, including Croydon, Thurrock and Birmingham. Norfolk's deputy leader for finance warned the number unable to meet statutory duties will likely grow when a new funding settlement is published. The Local Government Association called for significant funding increases to avoid system-wide failure.
Read at www.theguardian.com
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