Town hall finances enter ‘black hole’

Pressure on council budgets for adult and children’s social services has contributed to a £2.2bn “black hole” in their finances, local government leaders have warned.

An extra £663m is needed for older people’s and adult services, £599m for children’s services and £669m for antisocial behaviour, housing and pensions, the Local Government Association said in its annual statement on council tax.

The LGA said increasing demands from the government had not been matched by extra resources.

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