Yorkshire councils face 'dire' £350 million black hole, research suggests

Councils across Yorkshire are facing a “dire” cash crisis totalling more than £350 million, according to new research.

Analysis by the UNISON trade union found that the black hole in local government finances for the coming year means it is “extremely likely” that they will have to make cuts to jobs and essential services.

The report said that many councils will be forced to consider selling land and buildings as well as reductions to resources such as waste collections, libraries and leisure centres.

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UNISON said that the two biggest funding gaps inYorkshire are at Sheffield and Bradford city councils which both have over £70 million to make up, as well as Leeds which has a gap of almost £60 million.

The union called on Jeremy Hunt to provide further assistance to councils in his autumn statement in November.The union called on Jeremy Hunt to provide further assistance to councils in his autumn statement in November.
The union called on Jeremy Hunt to provide further assistance to councils in his autumn statement in November.

Other areas with cash shortfalls include Kirklees Borough Council on £47 million and North Yorkshire County Council which is just under £30m short.

The research, entitled Councils Under Pressure shows that nearly half (seven in 15) of the region’s councils have funding shortfalls of at least £10 million, meaning that they will have to tap into “virtually non-existent cash reserves”.

Only Calderdale Borough Council and Rotherham Borough Councils were shown to have no budget shortfall, accoring to the union’s research.

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UNISON warned that this shows a “bleak” future for councils with rising inflation and energy costs coming at after a decade of reduced government funding.

It warned that this could also see local authorities look at raising council tax by the highest possible amount, despite the cost of living crisis that is hitting struggling families across the region.

Kirklees Borough Council has said it plans to make 250 job cuts between October and March while York Council is looking at charging for domestic garden waste collections.

The union has called on the Chancellor Jeremy Hunt to provide extra grant funding in the autumn statement

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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.”