West Midlands councils warn of £200m funding gap

The Local Government Association says, external councils in England face a funding gap of £6.2bn over the next two years



Seven local authorities in the West Midlands have warned there is a "real risk of the whole region declaring itself as financially unsustainable”.

The councils say “the new government can help us to avoid this”, in a letter to Deputy Prime Minister Angela Rayner.

They are asking for more money to plug a collective funding gap of more than £200m next year.

The BBC has been sent a copy of the letter, which has been signed by the leaders of the metropolitan councils in Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton.

The letter says financial forecasts by the four Labour-led and three Conservative-led councils show “a collective forecast funding gap of £161m for 2025/26”.

“If we include further pressures from latest forecasts, this figure will be well over £200m,” the letter says.

The Local Government Association says, external councils in England face a funding gap of £6.2bn over the next two years.

It says this is being driven by rising costs and demand pressures to provide adult social care, children's services, and homelessness support.

In the letter, the seven authorities said they “cannot meet all the demands placed upon them, and the current position is unsustainable”.

“We are seeking a constructive relationship with central government where we can work together, and this will need to start with an open and honest conversation about our respective priorities, expectations and challenges,” the letter says.

The councils have requested a meeting with Ms Rayner to discuss “what is expected from local government within the resources available to us”.

The BBC has been told neither Ms Rayner nor her Ministry of Housing, Communities & Local Government has responded to the letter.