Local governments across England, Scotland and Wales face a £4.3 billion ($5.6 billion) hole in their finances in the coming year, according to a new report. That could force cuts to jobs and vital services, such as rubbish collection.
In a paper Monday, Unison, the United Kingdom’s largest trade union, warned that, without additional emergency funding to plug the projected shortfall in the 2025-26 financial year, “there is a serious risk of the widespread collapse of local government.”
The funding gap facing local councils is projected to balloon to £8.5 billion ($11.1 billion) the following year, according to the report, which is based on publicly available financial statements and some councils’ own estimates of their funding shortfalls provided to Unison.
The report comes as the UK’s recently elected Labour government prepares to unveil plans for local government funding in its first budget next month, after revealing a £22 billion ($29 billion) “black hole” in the nation’s finances in July.
Unison said many local government authorities could be forced to sell land and buildings, as well as cut back on services, such as rubbish collection, libraries and public toilets to fulfil a legal duty to balance their books