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

Senior Practitioner - Children in Care - North Essex

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children in Care - North EssexPermanent, Full Time£48,205 to £57,988 Per AnnumLocation
Recuriter: Essex County Council

Coroners Coordinator

Essex County Council
£25959.0000 - £26632.0000 per annum
Coroners CoordinatorPermanent, Full Time£25,959 to £26,632 per annum Location
Recuriter: Essex County Council

Adults Social Worker - Discharge to Assess

Essex County Council
£38487 - £51834 per annum
Interviews will be held in person at Rowan House, Colchester in late July 2026.This advert is open to Experienced Qualified Social Worker's About Our England, Essex, Colchester
Recuriter: Essex County Council

Senior Organisational Development Adviser

London Borough of Richmond upon Thames and London Borough of Wandsworth
43545 - 55992
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Crossing Patroller

London Borough of Richmond upon Thames and London Borough of Wandsworth
Pro Rata Salary - £5353,77
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner