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Council accounts show growing divide in financial health across tiers

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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 government has set out 16 commitments to fix the “fragmented and broken” local audit system – with up to £49m in funding to support local authorities in clearing the backlog.

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