Paying for Local Services (Edexcel GCSE Citizenship Studies): Revision Note

Local council funding sources

• Local councils need funding to provide services such as education, waste collection, housing and social care

• Funding comes from a mix of local taxes, central government support and fees

  • This mix helps councils meet local needs while following national rules

Are local councils in crisis?

• Some UK local councils are clearly under serious financial pressure

  • However, not all councils face the same level of difficulty

• Whether councils are in crisis depends on funding levels, local demand and management

Yes - some local councils ARE in crisis

• Rising demand for services

  • Social care costs have increased due to an ageing population

  • Funding for special educational needs and disabilities (SEND) has risen sharply

    • Councils are legally required to provide support, even when budgets are stretched

• Insufficient central government funding

  • Government grants have fallen in real terms for many councils

  • Councils with higher levels of deprivation are often hit hardest

• Specific financial pressures

  • Some councils face large, one-off costs

    • For example, Birmingham City Council faced huge equal pay compensation claims

  • Poor financial management or risky investments have worsened problems in some areas

• Impact on local services

  • Councils may reduce non-essential services

  • This can include libraries, youth services and road maintenance

No - not all councils are in crisis

• Different councils face different pressures

  • Some areas have lower demand for social care and SEND services

  • Councils with stronger local economies may collect more council tax and business rates

• Better financial management

  • Some councils plan budgets carefully and avoid risky spending

  • This allows them to maintain services without emergency measures

• Council tax decisions

  • Not all councils raise council tax by the maximum allowed each year

  • This suggests some councils remain financially stable

• Support from reserves

  • Some councils use savings built up in previous years

  • This can help them manage short-term pressures