LGA urges Chancellor for additional council funding ahead of spring statement
The Local Government Association (LGA) has written to the Chancellor, Rachel Reeves, ahead of the 3 March Spring Statement, urging further action to stabilise council finances amid sustained cost and demand pressures. It warned that, despite recent funding growth and a multi‑year settlement that has improved certainty, councils remain in their weakest financial position, with underfunding leading to reduced neighbourhood services, constrained preventative work and increased pressure on vulnerable residents. The LGA highlighted that 35 councils have required exceptional financial support for 2026–27, with 22% of social care authorities relying on temporary measures such as capitalising day‑to‑day spending or raising council tax above referendum thresholds. It reported that capitalisation directions have reached £6.9bn since 2020–21 and that councils have delivered £27.9bn in savings and efficiencies since 2010–11, but stated that continued reliance on asset sales and borrowing to sustain essential services is unsustainable and called for further resources and long‑term reform to support service protection and forward planning