Gareth Davies, the head of the spending watchdog, said: “There have been repeated delays to local government finance reform and government can no longer resort to short-term solutions to support local authorities.
In a damning report, the National Audit Office said that rising pressure on public services and repeated delays to reform the funding of local government meant town halls were in an “unsustainable” financial position.
A spokesperson for the Ministry of Housing, Communities and Local Government said: “This government is under no illusions about the financial issues facing councils.
Almost half of councils in England risk falling into bankruptcy without action to address a £4.6bn deficit amassed under a Conservative-era policy, the government’s spending watchdog has warned.
While funding from central government grants, council tax and business rates had increased by 4% between 2015-16 and 2023-24 to almost £56bn, funding per person had fallen during the same period by 1%.
