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Dan Bates: early indications from 2025/26 accounts shows contrasting picture

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While upper tier authorities are seeing significant pressures and are relying on external borrowing, district councils are so far not yet showing the same degree of balance sheet stress, finds Room151’s head of research Dan Bates.

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By the end of May, 12 local authorities in England had published their 2025/26 financial accounts: five unitaries, three metropolitan authorities and four districts.

An increasing amount of local authority audits are being held up by treasury management issues, with some resulting in a failure to meet statutory backstop dates.

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