UK Councils Warn of Service Cuts and Tax Rises Despite Funding Boost

Government's £64 billion funding package falls short as councils grapple with inflation and demand pressures.

UK government plans to increase funding for local councils by £4 billion to £64 billion ($81 billion) to address inflation-driven pressures.
Despite the increase, councils warn they may still need to reduce services and implement tax rises due to increasing cost and demand pressures.
Since 2020, seven councils have declared themselves effectively bankrupt, unable to balance their budgets.
Councils will be able to increase council tax by up to 3% without a local referendum, with a further 2% for those responsible for adult social care services.
Councils are calling for a long-term plan to sufficiently fund local services through multi-year settlements.