12.06.13
Council leaders fear bankruptcy and service failures
Nine out of ten council leaders expect some local authorities to face bankruptcy, or to fail to deliver vital services over the next three years, new research demonstrates.
A PwC report found that councils were struggling as they adjust to reduced levels of funding, with the possibility of greater cuts in the upcoming public spending review.
The survey highlighted that just 58% were confident that the necessary savings could be achieved without affecting the quality of services, down from 98% last year.
The report states: “Below the surface, there are signs that cracks are appearing as councils adjust to the reality of continued and significant financial pressures, and anxiety that these will become even more pronounced after the June 2013 spending review.
“Those cracks are apparent through a growing concern that the savings secured to date, and to be secured in the near future, are beginning to impact upon the quality of services and outcomes.
“Nine out of 10 chief executives and leaders now believe that, within the next three years, some local authorities will get into serious financial crisis or fail to deliver the essential services that residents require.”
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