FINANCE

Balancing the budget

How high is the risk of financial failure for local authorities? Tom Foster uses exclusive data analysis to reveal how councils have really been finding savings and how service costs have risen following austerity

In our national review of local government financial management arrangements Reforging Local Government (December 2015), we found that most councils managed their finances proficiently and have become lean.

Following the 2015 Spending Review, councils faced having to generate further savings of up to 29%, with the Local Government Association forecasting a £13bn funding gap. So, for many councils, the scope and depth of the services they provide would come under increasing focus.

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