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

Lessons in lockstep

By Paul Marinko | 17 July 2025

Jayne Bryant talks to Paul Marinko about how Wales’ national government has worked hard to protect local government, the way its councils are collaborating, ...

FINANCE

The changing face of public finance leadership

By Andrew Tromans | 16 July 2025

Andrew Tromans looks at the evolving skills and capabilities needed to lead in today’s complex financial landscape.

FINANCE

Hitting the strike button

By David Blackman | 16 July 2025

The three main local government unions have all rejected the employers’ pay offer. How strong is the possibility of widespread strike action against a backdr...

FINANCE

Unitary achieves pay harmony six years after reorganisation

By Martin Ford | 15 July 2025

A deal to harmonise legacy pay and terms for Bournemouth, Christchurch and Poole (BCP) Council workers is finally expected to be signed, six years after reor...

Popular articles by Ellie Ames