Councils across Yorkshire and Humberside have a hole in their finances exceeding £350m collectively for the coming financial year, making it extremely likely they will have to make huge cuts in essential services and jobs, says a report published by UNISON.
The figures, based on financial information gathered from local authorities across Yorkshire and Humberside, show the true scale of the dire state of local government funding, says the union.
Many authorities will be forced to consider selling land and buildings, as well as slash services for the vulnerable and vital community resources such as waste collection, libraries and leisure centres, UNISON warns.
The biggest funding gaps in the region are at Sheffield City Council and Bradford City Council which both have funding gaps of over £70m, followed by Leeds City Council with a gap of almost £60m.
Other authorities with severe cash shortfalls, according to UNISON’s research, include Kirklees Council on £47m and North Yorkshire Council which is just under £30m short.
The UNISON research, Councils Under Pressure, shows that nearly half (seven) of the region’s 15 councils are short by at least £10m. It means the local authorities will be forced to rely on virtually non-existent cash reserves. All are likely to have to make cuts to services and their workforces, says UNISON.
Regardless of their overall political control, the future is bleak for councils with increased energy costs, a decade and more of reduced government funding and inflation all worsening their financial position, the union adds.
The huge scale of the budget shortfall across local government means a growing number of councils are teetering on the brink, UNISON warns.
This precarious state of council budgets couldn’t come at a worse time with thousands of families ever more reliant on community services due to cost of living pressures, adds UNISON.
The shortfalls increase the risk that many authorities will consider raising their council tax as high as possible next time, says the union.
Most councils are responding to the crisis by cutting services and activities, including:
- Kirklees Council has said it plans to make 250 job cuts between October and March
- City of York Council is looking at charging for domestic garden waste collections, increasing car park charges and reducing spending on highway maintenance.
UNISON says Jeremy Hunt must provide extra grant funding in the autumn statement to help weather the immediate challenges or local authorities and their communities will no longer be able to cope.
Work must also be done at pace to reform how councils are funded to tackle the huge reduction in central government resources since 2010, urges the union.
UNISON Yorkshire and Humberside regional secretary Karen Loughlin said: “Communities rely on their local authorities for all manner of essential services, such as waste collection, road repairs and parks and other open spaces.
“But councils are on their knees. Ministers seem to care very little about public services and local government has been hit hard over very many years.
“Essential services can’t run on thin air. Staff levels have already been cut to the bone in desperate attempts to balance the books.
“Yet more service cuts and job losses are sadly inevitable across the country unless the government intervenes with the lifeline of significant extra funding. Not just for those on the brink, but to councils everywhere.”
| Council | Funding gap for 2024/25 in £ |
| Sheffield City Council | 72,700,000 |
| Bradford City Council | 72,000,000 |
| Leeds City Council | 59,200,000 |
| Kirklees Council | 47,000,000 |
| North Yorkshire Council | 29,100,000 |
| Wakefield Council | 22,480,000 |
| City of York Council | 13,600,000 |
| Barnsley Borough Council | 9,200,000 |
| North East Lincolnshire Council | 8,740,000 |
| Doncaster Borough Council | 7,600,000 |
| North Lincolnshire Council | 4,000,000 |
| Hull City Council | 3,000,000 |
| East Riding of Yorkshire Council | 1,595,000 |
| Calderdale Borough Council | 0 |
| Rotherham Borough Council | 0 |
| Total funding gap 2024/25 | £350,215,000 |
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