Local government union UNISON warns councils are on the brink of ‘financial disaster’ amid Kent County Council planned cuts
Published: 14:41, 12 September 2024
A union representing local government workers claims councils across the land are on the brink of “financial disaster” with Kent County Council needing to bridge an £81million funding gap.
Authorities face a financial shortfall of £4billion for the coming year, according to UNISON.
A report called “Councils on the Brink” mentions cash-strapped Kent County Council (KCC) as planning a massive programme of cuts to save money.
The council recently disclosed it must face funding shortfalls of more than £100m over the next two years.
According to UNISON, KCC needs to find £81m, which represents a 5.5% revenue budget funding gap, in 2025/26 alone.
Hampshire County Council, with whom KCC has made representations to government about inadequate funding in the face of soaring bills, needs to bridge double that percentage gap and find £132m.
Elsewhere, Bradford City Council needs to locate £126m (21.9%) and Somerset Council £104m (15%) in the same fiscal period.
It raises the spectre once again that councils are going to effectively be made bankrupt because they can no longer afford to pay for the services it must by law.
Shropshire Council has already shed 540 jobs and Nottingham City Council will shut four libraries.
York City Council has embarked on a consultation to ask residents how they can save £30m over the next three financial years.
A senior KCC councillor, Andy Booth, recently called for a cut in staff numbers to help make the authority efficient, a claim described as “beyond insulting” by fellow union Unite.
Kent is in a better position than many councils in that it has kept deep reserves to draw on, although senior officials have warned many times they cannot rely on them forever.
The Local Government Information Unit (LGiU) said late last year that KCC is a “perfectly well-run council”.
Unison said there is a collective, predicted shortfall of £4.3bn in England, Scotland and Wales.
In England that figure is £3.4bn and set to rocket to £6.9bn in 2026/27, much higher than forecasts.
Christina McAnea, UNISON’s general secretary, said: “Councils are teetering on the brink of financial disaster.
“Local authorities were clobbered by the previous government, whose harsh financial settlements left councils with no option but to sell off the family silver, auction off green spaces, close key community facilities and let thousands of workers go. Only swift and decisive action to stabilise local finances will do.”
UNISON said looking at authority funding gaps relative to annual budgets, while county councils are under huge pressure due to costly social care, the financial strain on districts is more apparent.
The union cites Eastleigh Borough Council’s estimated funding gap of £4.9m for 2025/26 represents 37.2% of its £13.1m annual revenue budget, followed closely by Rushmoor Borough Council (34.6%) and Thurrock Council (30.9%).
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Simon Finlay, Local Democracy Reporter