Metro Mayors urge government to save Local Authorities on brink of financial ruin

15 December 2023

West Yorkshire Mayor Tracy Brabin has led an intervention, backed by the mayors of Greater Manchester, Liverpool City Region, South Yorkshire, North of Tyne and Cambridgeshire and Peterborough, by writing to Local Government Secretary Michael Gove calling for more resources for struggling councils.

It comes as the government prepares to publish next year’s Local Government Finance Settlement, which could plunge the future of local public services further into doubt.

The letter, which is signed by six metro mayors representing communities right across the breadth of the country, calls for extra finance alongside a package of reforms to make local government funding fairer and more sustainable.

The Mayors argue that the government must take into account rising costs and increased demand, as well as the higher costs of providing for areas of higher deprivation.

“Councils across the country are struggling and we are urging the government to do the right thing and step in take action to support them before it’s too late.”
Tracy Brabin Mayor Of West Yorkshire

Several local authorities across the country have warned that they are unable to balance their budgets for next year, with fears they will effectively become bankrupt if the government does not step in with support.

Almost 1 in 5 told the Local Government Association they think it’s fairly or very likely their chief finance officers will have to issue a section 114 notice to declare themselves bankrupt.

While some councils have already been forced to take this drastic step, many others are on the verge or are having to make multimillion-pound cuts to services following a decade of austerity, which has seen the LGA warn about a £3 billion black hole in town hall budgets.

Tracy Brabin, Mayor of West Yorkshire said:

“We as Mayors have ambitious plans for our regions but we will never be able to deliver the full potential of devolution while our local authority partners are left on a financial cliff edge.

“We are seeing more demand than ever before for local public services and it is clear more urgent action must be taken.

“Councils across the country are struggling and we are urging the government to do the right thing and step in take action to support them before it’s too late.”

Read the full letter