William Eichler 09 September 2024

£4bn shortfall leaves councils facing ‘financial disaster’

£4bn shortfall leaves councils facing ‘financial disaster’ image
Image: Doidam 10 / Shutterstock.com.

Failure to address an estimated £4bn black hole in the finances of councils across England, Scotland and Wales could lead to ‘the widespread collapse of local government’, union warns.

New research by UNISON found that councils across the three nations face a collective funding shortfall of £4.3bn in 2025/26, with the figure rising to £8.5bn by 2026/27.

In England alone, the predicted funding gap for 2025/26 is £3.4bn, which will have risen to £6.9bn by 2026/27.

UNISON’s figures, based on freedom of information requests and councils’ own financial forecasts, surpass the estimates of the Local Government Association (LGA).

In June, the LGA estimated that councils in England face a funding gap of £2.3bn in 2025/26, rising to £6.2bn by 2026/27. The five councils with the biggest predicted shortfalls for 2025/26 collectively account for a half-billion-pound funding gap.

These are Hampshire County Council (£132m), Bradford City Council (£126m), Birmingham City Council (£119m), Somerset Council (£104m) and Leicester City Council (£90m).

UNISON general secretary Christina McAnea said: ‘Councils are teetering on the brink of financial disaster. Countless essential services and very many vital jobs are at risk, with terrible consequences for communities across Britain.’

SIGN UP
For your free daily news bulletin
Highways jobs

Part Time Domestic Assistant

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Domestic AssistantPermanent, Part Time£27,516 per annum, Full Time Equivalent including additional allowanceLocation
Recuriter: Essex County Council

Digital Content Designer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 to £54,507 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Intensive Fostering Support Practitioner.

Essex County Council
£33049.00 - £37698.00 per annum + + 26 Days Leave & Local Gov Pension
Intensive Fostering Support Practitioner.Permanent, Full Time£33,049 to £37,698 Per Annum. Location
Recuriter: Essex County Council

Intensive Fostering Support Practitioner.

Essex County Council
£33049.00 - £37698.00 per annum + +26 Days Leave & Local Gov Pension
Intensive Fostering Support Practitioner.Permanent, Full Time£33,049 to £37,698 Per Annum. Location
Recuriter: Essex County Council

Team Leader - Tenancy Sustainment

Durham County Council
Grade 12 £45,529 - £49,817
Join our Housing Assets and Investment team as a Team Leader - Tenancy Sustainment and play a key role in helping residents maintain successful tenanc Seaham
Recuriter: Durham County Council
Linkedin Banner