Councils are facing a record cash shortfall of more than £3.5bn in the coming year.
Data compiled by Unison, the trade union, showed that 114 councils in England, Scotland and Wales – almost a third – are facing shortfalls of more than £10m. It said 15 councils were likely to be in the red by more than £40m next year.
Top of the list is Birmingham City Council, with a £164m shortfall, followed by Thurrock Council with a gap of £157m, both of which recently issued section 114 notices, effectively declaring themselves insolvent.
Other authorities with severe cash shortfalls are Hampshire County Council, on £82m, Sheffield City Council, on £72.7m, and Bradford City Council, on £72m.
The research found that 86% had a predicted budget gap, with just 14% saying they were on course to balance the books.
Unison warned that the situation was likely to worsen as the cumulative funding gap is predicted to rise even further to more than £7bn in 2025/26.
