29 September 2023 , 09:38
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Cash-strapped councils could be forced to make cuts to jobs and vital services as local authorities struggle to make ends meet - and we want to know what you think.
Unison has revealed that councils across Britain are grappling with a collective “hole” of £3.5billion in their finances, with only 62 out of 371 councils (16.7%) reporting no funding gap for 2024/25. Research by the trade union found that almost a third of local authorities are at least £10million short of the money they need, while four percent are short of around £40million.
This means services for the vulnerable could be slashed, as well as integral community resources including libraries, waste collection, and leisure centres. Town halls may also have to consider selling land and buildings to survive, warns the union.
Birmingham City Council is top of the list with £164m short of its spending needs for next year, followed by Thurrock Council with a gap of £157million. The situation is expected to exacerbate further without a major cash injection in the Autumn Statement, says Unison. It estimates the overall funding gap could rise to £7billion in 2025/26 without intervention.
The union writes: “Regardless of their overall political control, the future is bleak for councils with increased energy costs, a decade and more of reduced government funding and inflation all worsening their financial position.”
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Unison General Secretary Christina McAnea said: “Communities rely on their local authorities for all manner of essential services, such as waste collection, road repairs and parks and other open spaces. But councils are on their knees. Ministers seem to care very little about public services and local government has been hit hard over very many years.”
A Department for Levelling Up, Housing and Communities spokesman said: "Local authorities have seen an increase in Core Spending Power of up to £5.1 billion or 9.4 percent in cash terms on 2022/23, with almost £60 billion available for local government in England.”
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