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Publication Devolution Machinery of government 10 December, 2024

Back from the brink: radical ideas for sustainable local finances

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Local authorities are not just administrators of public services. They are crucial agents of social and economic stability within their communities. However, their ability to fulfil this role has been severely compromised.

Local government in England is at financial breaking point. A combination of escalating service demands, chronic underfunding, and inadequate fiscal autonomy has created a financial crisis that risks undermining essential public services. Current funding models, fragmented governance, and weak audit systems have left councils with limited ability to address these challenges independently.

Back from the brink argues that only a whole-system approach can deliver a sustainable path forward. This requires not only addressing the financial and governance challenges in isolation but also tackling the interconnected issues holistically.

This report, alongside Accounting for failure which addresses the audit system, offers practical recommendations to secure a stronger future for the local state.