County councils across the UK are facing a financial crisis, with one in ten at risk of going bankrupt. These councils have now demanded emergency funds to protect vital services such as children's services and bin collections. The combination of soaring inflation and a surge in demand for children's services has led to historically high overspends, with almost half of the estimated £600 million extra spending attributed to kids' care needs.

Running Out of Road: Councils Sound the Alarm

In a letter to ministers, councillors have expressed their concerns, stating that they are "running out of road" when it comes to their budgets. The situation has become so dire that urgent action is needed to prevent a financial collapse.

Bin Collections Face Huge Threats

While children's services are most at risk, bin collections also face significant threats. Without an urgent cash injection, these essential services may be compromised. The County Councils Network predicts that by 2026, councillors across England will face a staggering £4 billion funding black hole.

Well-Managed Councils Struggling to Balance Books

Even well-managed councils are unsure or not confident that they can balance their books this year. Over spending, combined with future funding shortfalls, has created an unsustainable financial situation. Council chiefs have already been preparing for challenging savings and service cuts, totaling more than £2 billion over a three-year period.

Calls for Emergency Funding

Cllr Barry Lewis, CCN Vice Chair and Finance Spokesperson, has called for emergency funding to be provided to protect vulnerable children. He highlights that the majority of the additional and unexpected spending this year is beyond councils' control, with the number of vulnerable children requiring care rising dramatically post-pandemic. Lewis emphasizes the need for the same priority given to adult social care last year to be extended to vulnerable children, providing emergency funding this year and next.