A third of English councils will require government bailouts over the next three years, according to new research
February 2026 - Local Government
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A recent study indicates that a third of English councils expect to need additional financial support from the government within the next three years. Furthermore, with increasing demand for services and rising costs exceeding available funding, many councils anticipate difficulties in setting a balanced budget for the upcoming financial year.
The survey by the Local Government Association (LGA) polled the Chief Financial Officers (CFOs) from 315 English councils between 19 December 2025 and 16 January 2026, receiving 154 responses. The respondents were asked about their ability to set a balanced budget for the 2026/27 financial year, whether their councils would be able to fulfil all their statutory duties in the next three financial years and the likelihood of needing to apply for exceptional financial support (EFS).
The survey by the Local Government Association (LGA) polled the Chief Financial Officers (CFOs) from 315 English councils between 19 December 2025 and 16 January 2026, receiving 154 responses. The respondents were asked about their ability to set a balanced budget for the 2026/27 financial year, whether their councils would be able to fulfil all their statutory duties in the next three financial years and the likelihood of needing to apply for exceptional financial support (EFS).
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