One in three councils fear running out of money for services by 2022

One in three councils fear they will run out of funding to provide vital services such as child protection and care for the elderly within three years.

A survey found that town hall leaders believe they will not be able to provide the services they are bound to provide by law by 2022/23.

These include adult social care, protecting children and preventing homelessness.

The shocking survey by the Local Government Association also reveals that two thirds of councils believe they will run out of funding to meet their legal obligations by 2024/25.

Lord Porter, chairman of the LGA, said: ‘Councils in England face a funding gap of more than £3billion next year, rising to £8billion by 2025.

‘As this survey shows, if the government fails to adequately fund local government there is a real risk to the future financial viability of some services and councils.

‘Councils would normally have started their budget-setting planning process but remain completely in the dark about how much funding they will have next year.

‘Communities relying on the vital local services that make a difference to their lives deserve better.

‘Securing the financial sustainability of local government must be the top priority for the next Prime Minister.

‘Urgent guarantees are needed that councils will have the funding they need to ensure our vital public services survive the uncertainty ahead.

‘With the right funding and powers, councils can continue to lead their local areas, improve residents’ lives, reduce demand for services and save money for the taxpayer.’

The survey found that 17 per cent of councils are not confident of realising all of the savings they have planned to make this year – largely because of a higher-than-expected rise in demand for adult social care, children’s services and homelessness support.

These overspends have seen councils forced to make in-year budget cuts to try and balance their books.