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Council accounts show growing divide in financial health across tiers

(Shutterstock)

The latest accounts data reveals worsening financial health among upper-tier authorities, while district councils have seen an increase in reserves and resources, although upcoming Fair Funding reforms may soon alter this balance.

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According to new figures from LG Improve, analysing 88% of councils' unaudited accounts for 2024/25, upper-tier authorities' total usable revenue reserves fell by 3%

The local audit crisis is undermining the government’s ability to effectively monitor financial pressures within local authorities – and could be concealing issues leading to section 114 notices.

(Sir Geoffrey Clinton Brown)