Autumn budget must close Portsmouth funding gaps, trade unions demand

UNISON has warned that councils across the UK face huge financial gaps, placing services and jobs at risk unless the Labour government delivers major funding in the upcoming budget.

In May 2025, UNISON sent Freedom of Information requests to every council in England, Scotland and Wales. Councils were asked to provide their predicted funding gaps for 2026 to 2028.

A funding gap is the shortfall between what a council expects to spend and what it expects to receive.

Across the three nations, councils predict a £4.1bn gap in 2026 to 2027. By 2028, the total shortfall rises to £7.4bn.

Portsmouth City Council’s figures show a predicted funding gap of £2.58m , or 1.04 per cent of the budget, by 2026 to 2027. This rises to £9.01m , or 3.5 per cent, by 2028.

UNISON warn the situation worsens when considering councils that could be merged with Portsmouth under Labour’s plan for Local Government Reorganisation (LGR).

If Portsmouth, Havant, Fareham and Gosport were combined, the predicted shortfall reaches £16.18m by 2028, equal to 5.25 per cent of the combined budget, according to UNISON.

On 26 November, the chancellor will announce the budget, including how much central government funding councils will receive. Portsmouth Trade Union Council says the government must close the gaps and reverse the damage caused by austerity since 2010.

Unions also argue that Labour is giving councils extra responsibilities without proper funding. Labour wants to speed up planning to support growth and build more council homes.

However, UNISON found 884 full time planning officer vacancies and that only 22 per cent of planning departments in England are fully staffed. They argue that more Building Control and Housing officers will also be needed.

Jon Woods, chair of Portsmouth Trade Union Council, said: “Trade unions must be seen as key stakeholder and have full recognition and resources from the employers such as facility time, if changes in local government are going to be successful.

“Councils have been starved of cash by central government for years. We need this turned around and have proper investment from this Labour government. If they can find money for warfare at the drop of a hat, they can find money to fund high quality local council services.”

Councillor Steve Pitt, leader of Portsmouth City Council, said: “Local government is underfunded for its statutory duties, especially Social Care, SEND and Homelessness. To avoid cuts, Government must provide a settlement that covers inflation and meets growing demand for care and safeguarding services.

“Our latest forecasts show a £2.85m funding gap next year, rising to £9.01m by 2028/29, and it could grow by £2m annually due to uncertainty over funding reforms and rising care costs.

“However, we are financially stronger than many councils and already a sustainable unitary authority. The claim that Portsmouth is ‘too small’ and needs reorganisation is wrong. Hampshire alone faces a deficit of £136m in 2026/27.

“Creating new councils risks them inheriting huge deficits, and for that reason Portsmouth should be left alone.”