Controversial plans to impose "super councils" across England have been dismissed by senior figures from local authorities.
The Local Government Information Unit (LGIU) found widespread scepticism across local government about the plans to introduce overhaul the current system.
The Government said these plans would “lead to better outcomes for residents, save significant public funds which can be reinvested in public services, and improve local accountability”.
However, the “2025 State of Local Government Finance in England” report found only 23 per cent of survey respondents believed the reorganisation of local governance will raise the condition of councils’ finances, which are currently in a perilous condition.
Angela Rayner's reforms would see areas with two tiers of local authority (smaller district and larger county councils) merged to streamline services
PA
Furthermore, only 20 per cent believed the prescribed timescales for change can be delivered.
Even less respondents said the Government had offered sufficient clarity regarding its plans, whilst one in 10 felt they had been properly involved in the reorganisation process.
Under the proposals announced by Angela Rayner in December, areas with two tiers of local authority (smaller district and larger county councils) will be merged to streamline services.
These councils would cover large, interconnected populations of at least half a million, replacing current structures in two-tier county areas.
Jonathon Carr-West from the LGIU said: “At the end of last year, the Government was clear that devolution, reform of the local government finance system and public sector reform should go hand in hand. Our survey shows in quite stark detail that they are not currently aligned in any meaningful way.
“Respondents are not happy with the way that reorganisation is being carried out.
“The vast majority feel that the Government is not providing enough clarity, enough genuine involvement for councils in the process, or realistic time frames.
“And, critically, most do not believe that it will solve the financial problems that councils face.”
Every year, the LGIU’s Local Democracy Research Centre “surveys council leaders, chief executives, cabinet members for finance, and senior finance officers to find out how local authorities are managing and responding to an increasingly challenging fiscal environment”.
This year, the LGIU said: “Councils continue to struggle under inflation, workforce shortages, high debt burdens, the local authority audit backlog, and ring-fencing constraints; however, local government reorganisation and rises in National Insurance Contributions represent new, additional pressures on council finances.”
The survey found that six per cent of councils are at risk of having to declare effective bankruptcy this financial year if there are not significant reforms to the local government system.
If reform does not happen, 35 per cent of respondents said their councilsix per cent of councils are at risk of having to declare effective bankruptcy this financial year if there are not significant reforms to the local government system. could face financial failure by 2030.
One director of finance at a county council told the LGIU: “Local government reorganisation will be a distraction from needing to balance the books for all councils … It is making everything much more uncertain and challenging.”
Despite their financial concerns, 25 per cent of respondents expressed happiness with the consideration of local government in wider policy decisions, up from only eight per cent last year.
30 per cent also said they are happy with the Government’s understanding of the scale of problems facing local government finances, compared to only six per cent saying the same last year.
