The firm’s fourth annual report on the financial resilience of the local government sector in England found 79% of single tier authorities and 88% of districts were considered to have adequate medium term financial planning arrangements, providing assurance that financial resilience could be maintained in the future.

The report reveals significant change in the culture of local authorities, with financial responsibility permeating throughout the whole management structure.

Paul Dossett, GT head of local government, said: ‘It is encouraging to see so many local government authorities have risen to the challenges they have faced over the past four years. This is a major achievement and reflects an evolution in financial management that would have been difficult to envisage given the original reaction of the sector to the spending review in 2010.’

GT’s analysis suggests single tier and county authorities are facing a proportionally greater challenge than districts, partly due to the former’s responsibility for demand led services such as social care which continue to present a particularly acute financial risk. Meanwhile many district councils have delivered proportionally significant savings and are leading the way in new models of delivery including shared services and joint management arrangements.

The Midlands and North of England have the highest concentration of risks in terms of their current financial arrangements and outcomes. The South West has fared relatively well but has a comparatively high level of risk associated with strategic financial planning. The South East meanwhile has a slightly lower level of risk overall, but within this there are a broad range of experiences between boroughs.

Separate research by BDO suggests local councils are turning to social media as a way of reducing the time spent on certain activities and cutting costs while improving communication with citizens.

The third report on the issue, Direct message, found that two thirds (67%) of local authorities have embraced the use of social media in their everyday operations. Over three quarters (77%) believe that if used correctly, social media can lead to savings, compared to just half (51%) in 2012.

Amongst the cost savings identified in the survey 63% of councils have seen a reduction in the need to produce paper leaflets, while 40% have seen a drop in the need to telephone customers, while a drop in the inefficient use of officers' time was cited by 30% of councils.

BDO says the research indicates a cultural shift is underway as currently just 20% of local authorities place blocks on social media usage compared to 53% of respondents in 2012.