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Financial and service sustainability

Local services make a huge difference to people's health, wellbeing and quality of life. Yet there are indications that local services are not sustainable – economically, socially or environmentally.

In the NHS, organisations are allowed to spend more, or less, than the money they have been given if needed to ensure patient care. As a result, an increasing proportion of Trusts are rated at "high risk of financial failure". Local councils, by contrast, are legally required to both keep within budget and deliver certain services. With a 37% cut in central funding over the five years since 2010, councils have had to cut back other services, and longer-term investment and innovation.

Whether budget cuts put pressure on services or on finances, radical change in the way services are delivered is needed to make them more effective and cheaper. Some solutions being tried include joining up the delivery of different services, delivering services across bigger regions, and delivering services digitally.

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Managing PFI assets and services as contracts end

This report provides information on managing PFI contracts when they end and considers whether government is preparing for expiry appropriately.

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Published:
5 Jun 2020
Autumn 2020

Managing colleges’ financial sustainability

There are around 250 further education colleges and sixth-form colleges in England. Between them, they educate and train over 2 million learners, in a wide range of academic and vocational subjects. Colleges form an important part of the local and national education infrastructure. They are autonomous bodies, free to make their own educational and financial … Read more

Posted 9 January 2020 in:

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Financial sustainability of local authorities 2018

This report reviews developments in the sector and examines whether the Department, along with other departments with responsibility for local services, understands the impact of funding reductions on the financial and service sustainability of local authorities.

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Published:
8 Mar 2018