No more “sticking plasters” LGA chair urges ahead of local government spending review

The time for "sticking plasters and emergency government bailouts needs to come to an end", the Local Government Association's (LGA) chair has said after a survey revealed nearly three-quarters of responding councils felt it will be very or fairly difficult to set a balanced budget for 2025/26.

The survey, which took responses from 105 chief financial officers at English councils, also revealed that two in 10 responding councils were not very or not at all confident that they had sufficient funding to deliver all their statutory duties in 2025/26.

This figure more than doubles to five in 10 in 2026/27, the association reported.

All social care authorities responding to the survey said it was very or fairly likely that external service providers would pass the impact of changes to employer NICs back to their council through increased service costs in both adults' and children's social care and other contracted services.

The LGA has estimated these indirect costs could cost councils up to an extra £1.13 billion this year.

Separate LGA analysis also estimates that up to 60p in every £1 of extra council tax income for some this year could be used to cover the costs from the rise in employer National Insurance Contributions (NICs).

The results come as thirty councils were granted Exceptional Financial Support (EFS) this year (2025/26), which is up from 18 the year before.

The survey also comes ahead of the Government's Spending Review, which the LGA said will be critical for the future of local services, with councils in England facing a funding gap of more than £8 billion by 2028/29.

In a statement published alongside its survey results, the LGA warned that further budget cuts to plug growing funding gaps would affect the most vulnerable members of society and important services communities rely on every day.

It called for a significant and sustained increase in overall funding in the Spending Review to meet the requirements being placed on councils, including sufficient additional funding for increases in the National Living Wage and to compensate them fully for the costs of increased employer NICs, including indirect costs.

The LGA also called on the Government to create an improved and more sustainable local government funding system.

Cllr Louise Gittins, LGA Chair, said: "Every critical service a council provides needs to be funded properly. Without adequate funding the consequences for so many people who rely upon them could be devastating, but it will also be impossible for them to help the Government achieve its reform and growth agenda.

"The time for sticking plasters and emergency government bailouts needs to come to an end."

She added: "While the economic landscape is clearly challenging for government, the Spending Review must provide a long-term plan to adequately fund councils so they can provide the services communities rely on, and for them to play their critical role in bolstering growth and turning the Government's reform agenda into a reality."

Adam Carey