Although most councils have managed to achieve planned savings for 2012/13, the ‘cracks’ are starting to show in local government, according to a new report.
The Local State We’re In survey, by Pricewaterhouse Coopers (PwC), shows that councils have made savings through cutting back office costs, managing third party expenditure and improving internal processes, renewing procurement contracts and managing third party expenditure.
However, nine out of ten council chief executives warn there could be serious service failures within the next three years. with 77% saying there is little fat left to trim in local government.
Most chief executives (96%) also said the upcoming Spending Review will result in significant financial pressures for their council, and for a longer period of time.
As The Local State We’re In states: ‘There are increasing signs that cracks are appearing as councils continue to adjust to the reality of continued and significant financial pressures, and anxiety that these will become even more pronounced after the forthcoming Spending Review...
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