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

Fair Funding: Have rural councils in England really lost out?

By Gabriel Stewart | 26 May 2026

When it comes to spending power, urban councils will soar ahead of rural councils by 2028-29, according to LGA figures. But exclusive Institute for Fiscal St...

FINANCE

Getting ready for 'game-changer' Cyber Security Act: Five steps for councils

By Peter Jones | 26 May 2026

Peter Jones identifies key steps for boards to deliver their action plans and enhanced security practices, to ensure compliance with the Cyber Security Act.

FINANCE

May 8: The day city regions fractured from within

By David Marlow | 21 May 2026

David Marlow says the post-7 May political composition of England’s six Integrated Settlement Mayoral Combined Authorities did not only shake up who runs cou...

FINANCE

Reform's good local government problems

By Ann McGauran | 20 May 2026

Ben Bradley talks to Ann McGauran about the implications of Reform UK’s huge election gains for reorganisation and delivering efficiencies – and he shares th...

Popular articles by Ellie Ames