Ellie Ames 28 September 2023

Councils face record £3.5bn shortfall

Councils face record £3.5bn shortfall  image
Image: CHOKCHAI POOMICHAIYA / Shutterstock.com.

Research has uncovered a £3.5bn shortfall facing councils over the next financial year, revealing the ‘true scale of the dire state of local government funding’.

Just 14% of local authorities in England, Scotland and Wales said they were on course for a balanced budget in 2024-25, the analysis by trade union Unison found.

It discovered that 114 councils are at least £10m short of their planned spending requirements – and 15 are £40m short.

Birmingham City and Thurrock councils, which have both recently issued Section 114 notices, face the highest funding gaps: £164m and £157m respectively.

Hampshire County Council is £82m short, the next highest funding shortfall.

Next is Sheffield, which faces a major equal pay claim, followed by Bradford, which is set to become City of Culture 2025 – both with shortfalls of around £72m.

The overall picture is set to worsen, with local authorities’ cumulative funding gap looking to top £7bn in 2025-26.

The research is based on data relating to 369 (out of 371) local councils across Britain.

Unison general secretary Christina McAnea said: ‘Councils are on their knees. Ministers seem to care very little about public services and local government has been hit hard over very many years.

‘Essential services can't run on thin air. Staff levels have already been cut to the bone in desperate attempts to balance the books.

‘Yet more service cuts and job losses are sadly inevitable across the country unless the government intervenes with the lifeline of significant extra funding. Not just for those on the brink, but to councils everywhere.’

If this article was of interest, then check out our feature, 'How to fix local government finance'. and 'Righting the wrongs of equal pay'.

SIGN UP
For your free daily news bulletin
Highways jobs

Customer Services Assistant - Visa Checking Service

Essex County Council
Up to £23344 per annum
Customer Services Assistant - Visa Checking ServiceFixed Term, Full TimeUp to £23,344 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £23344 per annum
Customer Services AssistantPermanent, Part TimeUp to £23,344 per annum (FTE)Location
Recuriter: Essex County Council

Social Worker (Level 2)

Wakefield Council
£40,221.00 - £43,421.00, Grade 10, 37 hours, Permanent
An exciting opportunity has arisen for a permanent full time (37 hrs) Senior Social Worker post Wakefield, West Yorkshire
Recuriter: Wakefield Council

Stores & Infection Control Operative

Wakefield Council
£22,737.00 - £23,114.00, Grade 3, 37 hours, Permanent
Are you interested in working in Adult Social Care? Wakefield, West Yorkshire
Recuriter: Wakefield Council

CHC Team Manager

Wakefield Council
£43,474.00 - £51,515.00, Grade 12, 37 hours, Permanent
We are looking for an experienced CHC Team Manager to lead our dynamic Continuing Health Care team. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.