Box C: The state of local government finances

Jack Shaw

National Institute UK Economic Outlook, 2024, issue 13, 79-83

Abstract: There is a crisis unfolding across local government which has far-reaching implications that are not fully understood. Since 2021, seven local authorities in England have issued what is formally known as a Section 114 but popularly dubbed a 'bankruptcy notice'. This is historically unprecedented. The Government has explained these notices as examples of 'localised mismanagement' and cited either poor culture or governance. There is evidence that both poor culture and governance exist across a small number of England's 317 authorities, but the majority are well-managed. How did authorities which employ two million people in England, and are responsible for spending tens of billions on public services every year, get into this situation?

Date: 2024
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