‘Councils left with a £4bn shortfall’

COUNCILS face a funding shortfall of more than £4 billion next year, putting more strain on overstretched services, according to a report.

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Unison said its research found that the most vulnerable residents were paying the price for years of underfunding.

The union said figures compiled with information directly from local authorities in England, Wales and Scotland showed council finances remained in a “dire state” despite a cash injection following Labour's election victory last year.

Unison estimated that the shortfall, between what councils need to run services and what they receive, amounts to £4.1 billion in 2026/27.