The We Society
S5 Ep5: Protecting local councils with Andy Pike
Apr 10, 2024
Andy Pike, a renowned expert on local councils and author, discusses the financial crisis facing local authorities in England. He dives into the challenges and impacts of austerity measures on essential services, highlighting the struggles of councils to maintain services amidst budget cuts. The podcast explores the statutory obligations of councils in social services, evolution of local government responsibilities, and financial challenges faced by local authorities. It also delves into the need for structural reforms, fair property taxation, and models of local government funding systems.
35:50
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Quick takeaways
- Approximately one in five local authorities in England are projected to be insolvent by next year due to financial mismanagement and austerity measures, indicating a widespread crisis affecting crucial services.
- The financialization of local government has led to risky financial strategies, increased reliance on external financial advice, and a precarious situation for local authorities, highlighting the need for reform in funding models.
Deep dives
Local Government Financial Crisis
Various local authorities in the UK, including Essex, Nottingham, Birmingham, and Croydon, faced bankruptcy due to financial mismanagement and austerity measures. Approximately one in five local authorities are projected to be insolvent by the following year, indicating a widespread crisis. Drastic spending cuts since 2010 have severely impacted local services, particularly affecting vulnerable populations. The need to understand the causes of this crisis and find solutions has become increasingly urgent.
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