Title

FINANCE

£4bn shortfall leaves councils facing 'financial disaster'

Failure to address an estimated £4bn black hole in the finances of councils across England, Scotland and Wales could lead to the 'widespread collapse of local government’, a trade union has warned.

© Richard Oldroyd/Shutterstock.com

© Richard Oldroyd/Shutterstock.com

Failure to address an estimated £4bn black hole in the finances of councils across England, Scotland and Wales could lead to the 'widespread collapse of local government', a trade union has warned.

Research by Unison found that councils across the three nations faced a collective funding shortfall of £4.3bn in 2025-26, with the figure rising to £8.5bn by 2026-27.

Unison's figures, based on Freedom of Information Act requests and councils' own financial forecasts, surpass the estimates of the Local Government Association (LGA).

In June, the LGA estimated that councils in England faced a funding gap of £2.3bn in 2025-26, rising to £6.2bn by 2026-27. 

Unison general secretary Christina McAnea said: ‘Councils are teetering on the brink of financial disaster.

'Countless essential services and very many vital jobs are at risk, with terrible consequences for communities across Britain.'

FINANCE

As London's rough sleepers drop by 10% – can Burnham make that figure national?

By By Dan Peters | 13 August 2026

In his first speech after taking office, standing on the steps of Downing Street, Prime Minister Andy Burnham pledged to end rough sleeping.

FINANCE

EFS: A symptom of a system under strain

By Phil Rook | 06 August 2026

Local government needs a funding framework that supports statutory services sustainably rather than relying on one-off borrowing to meet ongoing pressures, w...

FINANCE

The severed links in health and care integration

By Martin Ford | 06 August 2026

Despite recognition of the benefits of closer integration between health and social care, recent months have seen a flurry of breakups in partnerships betwee...

FINANCE

Social care is main driver of councils' emergency funding requests

By Ann McGauran | 27 July 2026

Social care is ‘taking centre stage’ as the main factor driving councils’ requests for exceptional financial support (EFS) from Government, a new paper has f...

Popular articles by William Eichler