Stop a Section 114 Notice from being issued

Councils in Crisis: How CivicStar Can Help Navigate Insolvency Risk

Local Authorities in England are now warning of a looming financial cliff edge, with SEND deficits projected to exceed £5 billion by March 2026. Fifteen councils alone are facing deficits of over £100 million, and the removal of the statutory override in March means many could face effective insolvency or be forced to issue Section 114 notices (Source: The Guardian 13/06/2025)

This crisis isn’t confined to SEND alone. Councils like Croydon are struggling with overall debts nearing £2 billion, prompting government intervention and the appointment of commissioners (Source: The Guardian 12/06/2025). Across the board, growing deficits, audit backlogs, and service pressures, from potholes to waste collection are forcing councils to consider drastic cost-cutting, asset sales, and tax hikes.

Contact CivicStar to help you today

At CivicStar we support Local Authorities under severe financial pressure with a full-scale approach to financial recovery. Our Mission: Stop your Council from issuing a Section 114 Notice and prevent a slide into insolvency. With deep public sector experience and a proven record, we guide Councils towards stabilisation and sustainability.

With rising SEND demands, limited central funding, and shrinking reserves, many Councils are standing at a crossroads. Left unchecked, deficits will result in service cuts, asset disposals, and an increased risk of formal insolvency. CivicStar brings the experience, structured processes, and leadership needed to turn things around, preventing collapse and safeguarding vital community services.

We deploy rapid, rigorous financial health checks to surface hidden liabilities (Like SEND debt) and forecast the impact of losing the statutory override
Guided by highly trained financial executives and turnaround experts, CivicStar helps Councils develop actionable recovery plans, strengthen governance, and implement tighter financial controls before deficits spiral out of control.
By restructuring budgets focusing on efficiency improvements, compliance, and priority services, we aim to avert the need for legally mandated austerity measures.
We work alongside finance teams, offering both hands-on expertise and knowledge transfer, building long-term resilience while reducing burnout and skills gaps.
Whether engaging with DfE on SEND funding or liaising with commissioners in cases like Croydon, our support helps restore stakeholder confidence and secure sustainable financial futures.
We help councils reconfigure high-cost services like temporary accommodation and adult social care to ensure long-term affordability while protecting outcomes for residents.
CivicStar supports the closure of audit backlogs by improving reporting accuracy controls and financial clarity, rebuilding trust with members residents and regulatory bodies.

What we can do to help :

CivicStar’s Financial Recovery and Resilience Offer

Key areas we tackle:

Financial Recovery Planning
We craft precise recovery plans to realign budgets and steer through medium-term financial planning with realistic assumptions and strong governance.
Enhancing Financial Resilience
We identify and resolve structural deficits and reduce dependence on fragile reserves to build genuine resilience.
Cost Containment and Efficiency Strategy
We design targeted strategies to cut costs, improve value for money, and free up resources for essential services.
Service and Financial Transformation
We lead on redesigning service delivery with sustainable outcomes, empowering your authority to deliver smarter under financial pressure.
External Improvement Support
We embed capacity by working alongside your teams to improve governance and strengthen decision‑making.