District councils face a total budget shortfall of £900m over the next two years due to rising inflation and pay pressures, according to a new survey.
The survey by the District Councils’ Network (DCN) found that budget pressures caused by inflation will make it harder for authorities to maintain local services focused on helping people through the cost-of-living crisis.
It found that, due to inflation, 70% of respondent councils were considering scaling back on leisure services, with 66% reviewing cutting back on community support and resilience facilities.
Over a third of councils (37%) said they were considering scaling back on welfare support and 20% on homelessness help.
Cllr Sharon Taylor, DCN’s vice chair and finance spokesperson, said: “District councils face a perfect storm. Inflation and pay pressures are driving up our costs just as the cost-of-living crisis bites for our residents and fuels demand for our services.
“District councils are grappling with some very difficult decisions. We desperately don’t want to cut back on leisure services or welfare support. But the risk is that something will have to give.”
The DCN’s survey also revealed that councils expect demand for support services to grow in areas such as benefits support, homelessness and domestic violence victims.
It highlighted that funding available to meet the increased demand for these services was uncertain and called on the government for support.
Taylor added: “We call on the government to work with us to address the budget pressures so that we can continue supporting our communities through the cost-of-living crisis and beyond.”
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