The trade union Unison collected data from 391 councils, compiled through freedom of information requests and financial statements, and found that almost nine in 10 have a predicted budget gap in the 2023/24 financial year. Unison’s investigation found that waste collections, leisure centres, nurseries and other vital services are already being cut in some local authorities in England, Scotland and Wales as they prepare for a tough year ahead. The data suggested the cumulative funding gap is to worsen to more than £5.28bn in 2024/25.
Christina McAnea, the general secretary of Unison, said, “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 after the mini-budget fiasco..."
With inflation and energy prices eating into budgets, local authorities across the UK are facing a £3.2bn budget shortfall next year. With inflation and energy prices eating into budgets, local authorities across the UK are facing a record black hole that is unlikely to be plugged by central government as the Treasury is seeking to squeeze spending to make up for a £30-50bn shortfall in the public finances.
The Local Government Association has warned Jeremy Hunt in a letter that the £3bn-plus shortfall facing councils will lead to cuts, particularly as inflation has worsened since the last local government finance settlement was announced. “Without immediate additional funding, councils will face increasingly stark decisions about which services to stop providing as rising costs hit budgets. This means not just isolated closures of individual facilities but significant cuts to services people rely on, including those to the most vulnerable in our society,” it said.
The biggest budget shortfall of £80m next year is being faced by Birmingham city council.
Birmingham council leader Ian Ward said, “This is a perfect storm for local government and without government action, councils will have no choice but to significantly cut local services. So, if the government is truly committed to levelling up, then the chancellor’s autumn statement on 17 November must not signal a return to austerity.”
Edinburgh council reported this week it is also facing a £80m black hole, up from £70m last month, with the Labour local leader warning of “probably the worst cuts I’ve seen in my time in this council”.
Kent county council said it was increasing its projected overspend to £70m, up from £50m just three months ago, with its Conservative council leader telling colleagues: “We’ve never been looking at a projected set of pressures on this scale; no one should doubt the gravity of the situation.” It said not a single department would be immune from cuts.
In Lancashire, the council said this week that its project shortfall has almost trebled, from £30.5m to £87m. It is looking at cost-cutting measures on everything.
Wirral Council shutting nine libraries by the end of this month, with two being handed to community and church groups.
Gateshead Council looking at closing two leisures centres deemed “unaffordable” as it grapples with a £6.5m shortfall.
Leeds city council cancelling Bonfire Night events in six locations next month to save £200,000 of non-essential spending at a time of budget pressures.
Hillingdon council planning to close all three of its nurseries, which provide more than 100 childcare places across the borough.
Hampshire County Council planning to scrap a transport scheme that takes thousands of disabled children to school to save £1m. Home pick-ups would be replaced with drop-off points.
Norfolk county council planning to reduce access to recycling centres by closing them on Wednesdays, with its Tory council leader warning he had never dealt with funding reductions on this scale, to plug a £60m gap
The Welsh Local Government Association (WLGA) said its councils were facing pressures “on a scale never seen”, with “painful cuts” to come.
UK councils slashing services to meet £3.2bn budget shortfall | Local government | The Guardian
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