The House of Commons Committee of Public Accounts has published its report on local government financial sustainability, revealing that while core spending power increased by 4% in real terms between 2015–16 and 2023–24, per person funding has declined amid escalating service demand in sectors such as social care, special educational needs, and temporary accommodation—with local authorities spending £72.8bn in 2023–24, 58% of which was allocated to social care. The report underscores a critical shortfall in audit transparency and highlights the unsustainable reliance on short-term financial measures, notably the Exceptional Financial Support framework and a statutory override for special educational needs and disabilities overspends, the latter due to expire in March 2026. Moreover, the report points to the excessive complexity of the current funding system, marked by numerous small, ring-fenced grants, and warns that recent increases in National Insurance Contributions have not been fully assessed for their broader impact on local services. To address these challenges, the Committee recommends the development of a detailed outcomes framework, the consolidation of funding streams, and the transition to multi-year finance settlements from 2026–27, alongside urgent collaborative reforms from the Ministry of Housing, Communities and Local Government, HM Treasury, and other departments, with a clear plan for transitional arrangements in view of the impending local government reorganisation.