Title

FINANCE

Councils face £3.5bn shortfall

Research has uncovered a £3.5bn shortfall facing councils over the next financial year.

Research has uncovered a £3.5bn shortfall facing councils over the next financial year.

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

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

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

The next highest funding shortfalls were reported by Hampshire CC (£82m).

Sheffield City Council, which faces a major equal pay claim, and Bradford MDC, were next – both with shortfalls of around £72m.

Unison general secretary Christina McAnea said: ‘Councils are on their knees.

‘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.'

FINANCE

Investing in homes that work for councils and residents

By Josie Parsons | 19 December 2025

Delivering homes that are financially sustainable and socially valuable is a priority that’s becoming increasingly challenging. Housing investment discussion...

FINANCE

Pride in Place: Policymakers must learn from the past

By Sarah Patrice | 19 December 2025

Lessons from previous regeneration programmes must not be lost as local authorities gear up for next April’s launch of the Pride in Place Programme, say Emma...

FINANCE

LGA morale at all-time low

By Dan Peters | 18 December 2025

Morale at the Local Government Association (LGA) has hit an all-time low, with possible axing of free tea and coffee to cut costs the final blow.

FINANCE

Playing the long game

By Ann McGauran | 18 December 2025

Cornwall’s approach to managing the cost of supporting working age adults has already started to reap dividends, and as Ann McGauran finds out, this is a lon...

Popular articles by Ellie Ames