English councils in financial crisis

Almost one in five council leaders and chief executives in England think it is likely the chief finance officer will need to issue a Section 114 notice this financial year or next due to a lack of funding to keep key services running, according to new research by the Local Government Association (LGA).

The LGA estimates councils in England face a £4 billion funding gap over the next two years, just to keep services standing still.

But it said the November 2023 Autumn Statement failed to provide the additional funding needed to protect services from further cuts. 

It published the survey findings after Nottingham City Council became the latest local authority to issue a Section 114 notice. The notice was issued in response to a predicted £23 million in-year budget overspend.

The council pointed to an increased demand for children’s and adults’ social care, rising homelessness presentations, and the impact of inflation.

“After decades of austerity, our city is already cut to the bone with vital services across Nottingham struggling with staff shortages,” said GMB organiser Adana Godden.

“Council funding in Nottingham has been cut by more than 40% since 2010; our union won’t stand by quietly as our members pay the price for this.”