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The average council now faces a \u00a333million deficit by 2025-26, according to a new investigation.<\/p>\n
This is a rise of 60 per cent from \u00a320million two years ago.<\/p>\n
Unison said the situation meant some councils would not be able to offer the \u201clegal minimum of care\u201d next year.<\/p>\n
The government said decisions on the funding beyond the next financial year had not yet been made.<\/p>\n
The findings, unearthed by the BBC, revealed council chiefs expect to be \u00a35.2bn short of balancing the books by April 2026 even after making \u00a32.5bn of planned cuts.<\/p>\n
At least \u00a3467m will be stripped from adult care services, which include elderly care homes, respite centres and support services for people with disabilities.<\/p>\n
This year, councils are closing leisure centres, reducing care packages and raising fees for services like waste collection and parking in order to break even.<\/p>\n
Unison\u2019s head of local government Mike Short said town halls were in the \u201cdirest of states\u201d.<\/p>\n
\u201cThis is not a sustainable situation,\u201d he said.<\/p>\n
\u201cLocal authorities simply don\u2019t have the funds to provide even statutory services.\u201d<\/p>\n
READ MORE: <\/strong> Councils in crisis: Check how bad budget deficit is in YOUR area[LATEST] <\/strong><\/p>\n Councillor Shaun Davies, who chairs the Local Government Association (LGA), said inflation, the introduction of the National Living Wage, energy costs and increasing demand for services were adding \u201cbillions of extra costs just to keep services standing still\u201d.<\/p>\n Gateshead Leisure Centre is one of a number of public leisure facilities to have have been shuttered.<\/p>\n The investigation also found that Bradford Council is using reserves at an \u201cunprecedented level\u201d while Leicester City Council said it was going to run out during the next financial year.<\/p>\n Several councils have called for financial support from the government.<\/p>\n Among them Slough, Croydon, Thurrock, Kensington and Chelsea, and newly created Cumberland and Westmorland and Furness councils will share around \u00a3393million in government funding this year.<\/p>\n Thurrock declared bankruptcy in December 2022 after a series of failed solar farm investments saw the council run up a \u00a3500million deficit – one of the largest ever reported for a council of its size.<\/p>\n Slough was also forced to effectively declare bankruptcy after borrowing more than \u00a3700m to buy land and properties.<\/p>\n Other large councils have indicated being in financial distress.<\/p>\n Birmingham City Council, Europe\u2019s largest local authority, halted all non-essential spending in June after announcing it was facing a bill for a \u00a3760m unequal pay claim.<\/p>\n The \u00a351m of savings being made at Shropshire amount to a fifth of its overall budget this year – the highest proportion for any council in the UK.<\/p>\n Downing Street said the government has already given councils a helping hand this year.<\/p>\n The Prime Minister\u2019s official spokesman said: \u201cWe provided a \u00a35billion increase to council budgets this year, which we believe provides the support and funding that councils need.<\/p>\n \u201cAnd we\u2019re also making for further \u00a34.7billion for the social care system and England next year. We think that\u2019s a fair deal for local authorities and reflects the work they do for communities.\u201d<\/p>\n He added: \u201cFirst and foremost, obviously it\u2019s for councils to manage their finances appropriately, the government has provided significant sport indeed an additional 5 billion pounds. We are ready to speak to councils that may have concerns about their finances or face pressures that they haven\u2019t planned for.\u201d<\/p>\n We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n