UNISON: Councils on the brink as £4bn shortfall looms

Councils across England, Scotland and Wales are facing a £4bn funding black hole next year, leaving the most vulnerable paying the price for years of underfunding, warns UNISON.

The union’s latest ‘funding gap’ report shows council finances remain on the brink, despite extra cash after Labour’s election win. A £4.1bn shortfall is forecast for 2026/27, threatening frontline services that millions rely on.

After more than a decade of austerity, councils are being forced to take drastic measures—cutting social care, closing care homes and axing support for vulnerable children, the union says.

UNISON argues that only fair, long-term funding from Westminster can stop local services from collapsing. It is also urging the Government to curb outsourcing, fund reorganisation properly, and protect jobs, pay and public services.

UNISON general secretary Christina McAnea said: ‘After 15 years of ruthless austerity, no community has been left untouched. Frontline staff are exhausted, services are overstretched, and thousands of jobs at risk.

‘Investment in councils, their communities and workers is urgently needed. This means multi-year funding settlements so local authorities can plan more effectively and deliver services without the constant fear of collapse. Action is also needed to protect jobs, wages and employment terms threatened by council reorganisation.’