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English councils face £50bn black hole
24 May 2019
A rising demand for services and rising costs, driven in part by inflation, means English councils need an additional £51.8bn of funding over the need six years just to stand still.
The analysis from PwC for the County Councils Network (CNN) says plugging the gap could mean annual council tax rises, new charges for services and a fresh round of draconian cuts. The funding shortfall for this current year alone stands at £4.8bn.
Chairman of the County Councils Network, Paul Carter, said: “If the government does not provide additional funding for councils over the medium term, many local authorities will resort to providing the bare minimum, with many vital services all but disappearing, particularly preventative services. Even these draconian cuts won’t be enough for many well-run councils to balance the books and it will leave our finances in disarray with many of us struggling to deliver even the basic level of local services.”
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