Local authorities across England and Wales face a funding gap of £2bn or more next year as inflation eats into the ability of many to provide basic services.
Analysis by the Local Government Association, which has its annual conference this week, found that the extra cost to councils would exceed their core funding by £2bn in 2023-24 and £900m in 2024-25. And that is assuming inflation falls to 2.9%, as the government hopes, by the end of this year.
If inflation remains higher, tracking the Bank of England’s more pessimistic outlook, local authorities would face additional costs of £740m next year, and £1.5bn in 2024-25.
