Local authorities could be forced to cut essential services as they face a collective funding gap of more than £3bn, trade union Unison has warned.

Research by the union showed that Birmingham City Council is projected to have the largest funding gap at £80m in 2023-24, Bradford City Council is next on £77m, followed by Edinburgh City Council on £63m.

Drawing on data from 391 councils across the UK, Unison found that 86% have a predicted budget gap.

The union calculated there will be a collective shortfall of £3.19bn across councils in 2023-24, rising to more than £5.28bn in 2024-25.

Unison general secretary Christina McAnea said: ‘Cash-strapped councils are having to resort to ever more desperate measures after years of austerity just to keep services going.

‘Local communities cannot be the ones to pay the price for the Government's grotesque mismanagement of the economy.

'The new Prime Minister and chancellor must sort the crisis in local government funding and give councils the cash they need to save services.'