Local authorities are collectively facing a funding shortfall of more than £3.5bn in the coming year, according to a new report by the trade union UNISON.
Research based on data from 369 local authorities revealed that 114 councils across England, Scotland and Wales are facing a funding shortfall of at least £10m in 2024/25, with 15 authorities having a budget gap of around £40m.
UNISON’s analysis found that councils’ cumulative funding gap for 2024/25 totals £3.57bn, with the shortfall rising even further in 2025/26 to over £7bn.
Christina McAnea, UNISON’s general secretary, 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.”
UNISON’s research revealed that 86% of authorities have predicted a budget gap for 2024/25, with 14% anticipating to balance their books.
The list is headed by Birmingham City Council, which is £164m short of its spending need for next year, followed by Thurrock Council with a gap of £157m. Both authorities are currently under government intervention and have issued section 114 notices in the past year.
Other authorities with severe cash shortfalls include Hampshire County Council on £82m, Sheffield City Council on £72.7m and Bradford City Council on £72m.
UNISON warned that these funding gaps will force authorities to consider selling land and buildings as well as cutting services. It stated that currently, Woking council has put 350 workers across the authority on notice of redundancy to respond to its budget gap, with Kent considering the closure of 37 children’s and youth centres.
The union called for chancellor Jeremy Hunt to provide extra funding in his Autumn Statement for local authorities to deal with the immediate funding pressures.
“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,” McAnea added.
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