Most councils across England, Scotland and Wales are still struggling to balance their books despite some easing of financial pressure, according to a new report from UNISON.
The union's annual study, based on freedom of information requests and financial plans from 368 local authorities, found councils are forecasting a combined funding gap of nearly £4bn for 2027/28, rising to £7.1bn the year after. That marks an increase on last year's projected shortfall of £4.1bn.
UNISON said recent Government funding settlements had eased some immediate pressures, but rising demand for adult social care, special educational needs support and housing continues to outpace resources.
The report also warned that emergency financial support from Whitehall, while keeping some councils solvent, is masking deeper problems.
More than 35 councils needed over £1.5bn in emergency support in 2026/27 alone to meet their legal duty to set balanced budgets.
London faces the largest regional funding gap at £851m, followed by the South East at £785m, with Scotland (£538m) and Wales (£269m) also under strain.
UNISON general secretary Andrea Egan said councils were ‘moving in the right direction,’ but stressed that ‘stabilisation isn't recovery,’ calling for long-term funding certainty and fair pay for local government staff.
