Title

FINANCE

Councils face £10bn funding 'black hole'

Councils could be forced to cut billions from social care services due to a £10bn 'coronavirus black hole,' Labour has warned today.

Councils could be forced to cut billions from social care services due to a £10bn 'coronavirus black hole,' Labour has warned today.

The analysis, based on 2019/20 budget estimates, warned that local authorities may need to cut adult social care by £3.5bn.

There would also have to be £2bn cuts to children's social care and £700m cuts from public health budgets, Labour said.

Labour's shadow local government secretary, Steve Reed, said: 'Local authorities are the biggest funders of social care in England so when the Government promised to stand behind councils through this crisis Labour supported them.

'But now ministers are breaking that promise, leaving councils with a £10bn black hole forcing 21% cuts across the board.

'Unless the Government drops those plans the frontline heroes we're cheering today will lose their jobs tomorrow and the equivalent of 225,000 frail and frightened older people and vulnerable adults will lose the support they rely on.

'That would be a catastrophe for social care, disastrous for those who lose support as providers are forced out of business, and would, once again, fail the very people putting their lives on the line to get us through this crisis.'

Click here for an analysis of the impact of coronavirus on local government finance

FINANCE

A new government front door for local impact

By Bramwell Blower | 14 November 2025

Bramwell Blower asks if the Government’s new Office for the Impact Economy can help business and local government partner together.

FINANCE

Avoiding SEND collapse

By Cllr Bill Revans | 14 November 2025

A new report makes it clear that if the Government does not take decisive action to reform SEND, the entire system faces total collapse by the end of this Pa...

FINANCE

Reorganisation: The next chapter in Surrey

By Ann McGauran | 13 November 2025

As Surrey prepares for unitarisation county council leader Tim Oliver tells Ann McGauran politics must stay out of the transition process and he remains opti...

FINANCE

LGA faces change or terminal turmoil

By Heather Jameson | 13 November 2025

Heather Jameson says Joanna Killian's 'future operating model promises to deliver a more connected, outward-looking Local Government Association, and if it d...

Popular articles by Laura Sharman