Councils face a collective funding gap of over £3bn in the next financial year forcing them to cut essential services, says a report published today (Friday) by UNISON.
Waste collections, leisure centres, nurseries and other vital services will all be hit according to the findings based on information* from local authorities in England, Scotland and Wales.
The UNISON report shows that Birmingham City Council is projected to have the largest funding gap at £80.1m in 2023/24. Bradford Council is next on £77.1m, closely followed by the City of Edinburgh Council on £62.6m.
The record shortfall, totalling £3.19bn across councils in the three nations in 2023/24, means local authorities will be forced to rely on dwindling reserves, and cut services and jobs, says UNISON.
The report shows there is worse to come with the cumulative funding gap rising even further in 2024/25 to over £5.28bn, says UNISON.
UNISON says skyrocketing inflation, energy costs and the economic impact of the mini budget mean that the actual shortfall will be many times higher.
The picture is likely to get bleaker still, says UNISON. Chancellor Jeremy Hunt has spoken of further cuts to the public sector, which are likely to compound the crisis in local government funding.
And as the cost-of-living crisis deepens and inflation soars, even greater strain will be placed on councils as their costs increase and demand grows for food banks and other support.
UNISON’s research is based on data relating to 391 local councils across the UK. It found that the vast majority (86%) have a predicted budget gap.
Most are responding to the crisis by cutting services and activities, examples include:
- Cornwall Council has closed three children’s centres in Newquay and Falmouth
- Wirral Council is to shut nine libraries by the end of October 2022
- Leeds City Council has cancelled bonfire night events in six locations next month
- Hillingdon Council plans to close all three of its nurseries, which provide more than 100 childcare places across the borough at the end of 2022
- Hampshire County Council is considering scrapping a transport scheme for disabled children. Home pick-ups would be replaced with dedicated drop-off points
- Norfolk County Council plans to reduce access to recycling centres by closing them on Wednesdays
- Liverpool City Council has cut its call centre opening times from 24 hours a day, 365 days a year to Monday to Friday from 8am to 6pm
- Slough Borough Council is to reduce waste collections from weekly to fortnightly from next June.
UNISON says even more services – as well as jobs – will be at risk if councils have to declare themselves effectively bankrupt.
UNISON general secretary Christina McAnea said: “Local authorities provide the essential services everyone relies on such as waste collection, road repairs, and children’s care.
“But cash-strapped councils are having to resort to ever more desperate measures after years of austerity just to keep services going. Now the government looks set to make their predicament infinitely worse with emergency cuts to spending following the mini-budget fiasco.
“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.”
Notes to editors:
– *UNISON sent a Freedom of Information request to all 397 local councils in England, Scotland and Wales for their 2022/23 funding shortfall figure. A total of 251 responded, including four who provided no data. For the 46 who did not respond, UNISON obtained figures for 44 from each council’s medium-term financial strategy report. A full breakdown of UNISON’s findings is available.
– UNISON is the UK’s largest union with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy. They are employed in the public, voluntary and private sectors.
Media contacts:
Anthony Barnes M: 07778 158175 E: a.barnes@unison.co.uk
Liz Chinchen M: 07778 158175 E: press@unison.co.uk
