Big article in The Sunday Times today on local government finance, which I can't link to because of their paywall. It deals primarily with the reduction in government support for Councils and their reaction to it. It also analyses the explosion of highly paid posts in local government that occurred under the last government.
What is going on is that the government is, quite rightly, reducing spending and local government is having to share in this. Good Councils that control costs and run balanced budgets can take this, not easily perhaps, but it is not a disaster. Basildon Borough Council is in this category. Bad Councils that have stumbled along for years with a high cost base and poor financial controls are in trouble. So, we see the appalling example of Manchester City Council, who are almost gleefully cutting services while blaming the government, and others who are nearly as bad.
My expectation is that this year will be sound and fury, but next year will be the crunch when the second round of reductions in government funding hit. At that point it is actually possible that some of the worst Councils will implode. A lot of people don't seem to get this, local authority finance is a complex, dry subject after all. So, instead there is a lot of chat about excessive salaries and Council newspapers, because they are easy to understand.
The reality is much, much worse.