Future Local Lab
Local Government Explained
Local Elections England: 2026The State of Local Government Finance in England
Each year, LGIU surveys council leaders, chief executives, cabinet members for finance, and senior finance officers to find out how councils are managing and responding to a fiscal environment that has become increasingly challenging. Building a clear picture of the situation within councils is vital for understanding local government’s capacity to deliver essential services, the pressures staff face, and the truth behind the spending decisions councils must make.
2026 State of Local Government Finance in England
This report, the LGIU’s 13th annual State of Local Government Finance in England survey, indicates that 15% of the sector are likely to need Exceptional Financial Support (EFS) this financial year, with 39% expecting to do so within the next five years. This scheme is widely seen as an unsustainable mechanism that is likely to load councils with additional debt and worsen the financial challenges facing the sector.
Past surveys
2025 State of Local Government Finance in England
The 2025 report reveals that local government reorganisation and increases in National Insurance Contributions represent additional challenges for a sector already in crisis management. Against a backdrop of surging service demand a high proportion of authorities believe it is likely that they will issue section 114 notices in the short and medium term. Read the report.
2024 State of Local Government Finance in England
The results of the 2024 survey laid bare just how widespread the desperate funding situation of councils is. More than 50% of respondents warned that their councils face possible bankruptcy in the next five years. Councils will be using every means in their power to attempt to balance the books this year, including raising council tax, increasing charges and dipping into reserves. Read the full report.
Local government finance in England - past surveys
On the eve of the 2024 finance survey launch, Dr Greg Stride, the LDRC’s lead finance researcher, explored the results up to this point and how we updated the survey for 2024. Read this article.
State of local government finance report 2023
State of local government finance report 2020
State of local government finance report 2019
State of local government finance report 2018
2017 State of Local Government Finance survey
About LGIU research
LGIU’s research brings together experts, practitioners and academics to investigate the key challenges facing local democracy worldwide. Our work is always solution-focused; we work closely with our extensive member base and the wider sector, ensuring that our research programme always reflects local government’s priorities.
