Mike Short, head of local government at UNISON, argues that the Autumn Statement is a chance to close funding gaps, protect services and staff, and set local government on a path to stability and renewal.
After a decade and a half of austerity, councils are running on goodwill and grit.
Years of deep cuts have eroded services and exhausted the local government workforce, leaving communities paying the price through lost facilities, opportunities and jobs.
Yet there’s a chance to shift from decline to renewal. The Labour Government’s first steps have already shown a different approach is possible.
The extra funding in January’s finance settlement made a small but discernible difference. Recent research by UNISON showed the national funding gap – between what councils need to run services and what they actually receive – contracted slightly for the first time in years.
Chancellor Rachel Reeves’ forthcoming Autumn Statement must now close that shortfall further. It must lay the foundations for a new era of stable local government that delivers for all residents.
UNISON’s annual funding gap report, published last month, projects a combined financial void of £4.1bn for local authorities across England, Scotland and Wales in 2026-27. That compares with £4.3bn for the previous year. And while that improvement may not seem huge, it’s quite an about-turn after continual steep increases for some considerable time.
In practice, hefty shortfalls mean adult social care is stretched to breaking point, children’s services are under siege, housing budgets are overwhelmed, and community services such as libraries and youth centres forced to shut down.
For UNISON, the autumn statement must recognise that councils aren’t only doing their best to operate on tight budgets, they’re actually trying to manage decline in the best way they can.
Without sustained support from Westminster, more services will be scaled back or collapse, and the axe will sink deeper into council jobs.
The crisis didn’t arise overnight. Since 2010, local authority budgets have been savaged again and again. UNISON’s analysis found 1,243 council-run youth centres closed between 2010 and 2023 in England and Wales, for example.
Children’s centres have also been hit hard, with almost two in five (38%) of council-run sites in England closing over the same period.
These aren’t just statistics. Each cut represents the loss of vital early-help services for vulnerable families, or childcare that enables parents to work.
Austerity has also meant pay for local authority staff has consistently lagged behind other public-sector workers. That drags down morale and makes recruiting and holding on to employees a daily struggle for town halls. The autumn statement must be part of a reversal.
After a decade and a half of austerity, councils are running on goodwill and grit.
Of course it’s not just services that need investment. Many councils are navigating major reorganisation. From mergers to brand new unitary structures, transformation will carry heavy costs – financial, operational and cultural.
Westmorland and Furness Council reported transformation costs of £26m in 2023/24, for example. This ‘reorganisation tax’ is now faced by many others.
The Chancellor’s statement must recognise that Government-imposed reorganisation isn’t cost-neutral. Staff wages, pensions and conditions must be protected.
Proper funding is needed to cover these changes. Services mustn’t be sacrificed to cover the bills. Otherwise, the pursuit of ‘efficiency’ will instead hollow out local government. And the public will lose out.
Of all the pressures on councils, there’s none more acute than social care for adults and children.
These systems have been stretched beyond design, with care workers undervalued, vacancies high and demand soaring. UNISON has been pushing hard for the promised fair-pay agreement for adult social care in England, and this must be rolled out swiftly. A national care service must also follow without delay.
UNISON hopes the autumn statement delivers targeted support for councils and their workforces. Proposals to introduce multi-year funding settlements from next year will enhance authorities’ abilities to boost pay, tackle recruitment and retention issues, and sustain essential services.
Beyond that, a succession of multi-year deals is needed to bring long-term stability.
Funding local government properly would also support wider economic ambitions for Britain. It would drive growth, support people into work, advance net-zero goals and improve public health.
Councils are also central to getting Britain building. With around 900 vacancies in planning departments across England, personnel shortages threaten Labour’s housebuilding and development targets.
Of course, there’s a cost to closing the funding gap, delivering stability, improving pay, tackling the care crisis, managing reorganisation, protecting jobs and cutting planning delays. So where will the extra money come from?
Earlier this year, UNISON general secretary Christina McAnea called for the government to implement a wealth tax to invest in public services. Revenues could also be raised through a new levy on gambling companies. And there are other fair ways to increase investment in councils without hitting working people.
The autumn statement offers the Chancellor a chance to reset the relationship between central and local government soured by austerity. It’s time to move beyond quick fixes and short-term pots of money.
The message is clear: invest in councils, value the workforce, commit to reform – and local government can deliver for Britain.
Discover all the latest analysis in our Autumn Budget Insights series.
