Councils facing 4 billion hole in finances for coming year, research suggests [Video]

Councils across England, Scotland and Wales have a collective hole in their finances amounting to more than £4 billion for the coming financial year, threatening fresh cuts to services, new research suggests.

Unison said the shortfall was “way beyond” any previous estimates, warning that council funding was in a dire state with “massive cuts” likely to essential services and jobs.

The union said in a report, Councils on the Brink, that failure to tackle the growing problem soon risked “widespread collapse” of local government.

Many authorities could be forced to sell land, buildings and other capital assets, as well as cut back vital community services like rubbish collection and recycling, libraries, public toilets and leisure centres even further, Unison warned.

Without urgent government support, the union is warning that the combined funding shortfall could rise to £8.5 billion by 2026/27.

After 14 years of ruthless austerity, the very fabric of local society …