# UK local government funding crisis > Live situation record from CLSTR: https://clstr.news/situations/uk-local-government-funding-crisis > Updated: 2026-09-17T18:48:56.000Z. Sources: 3. Developments: 2. UK local authorities are facing significant budget shortfalls, with research from the trade union Unison indicating a combined funding gap of nearly £4 billion across England, Scotland, and Wales for the upcoming financial year. This deficit is projected to increase to £7.1 billion the following year, with London and the South East experiencing the largest collective deficits. Specific pressures are being driven by rising demands in social care and essential services. For example, BCP Council is projecting a £27 million overspend due to adult and children’s social care costs, potentially requiring emergency central government support. Similarly, Barking and Dagenham London Borough Council anticipates a £28 million gap, noting that even with projected increases in grants following a government funding shake-up, the additional money is insufficient to meet the intensifying demands of social care, temporary accommodation, and special educational needs. ## Timeline ### 2026-09-17: UK local councils face budget gaps due to rising social care costs UK councils, including BCP and Barking and Dagenham, face major budget deficits driven by rising costs in adult and children’s social care and increased demand for essential services. 2 sources. https://clstr.news/cluster/uk-local-councils-face-budget-gaps-due-to-rising-social-care-costs ### 2026-09-13: UK councils face £4 billion funding gap, Unison research shows Unison research shows UK councils face a nearly £4 billion funding gap next year, with London and the South East experiencing the largest shortfalls amid controversial government funding changes. 2 sources. https://clstr.news/cluster/uk-councils-face-4-billion-funding-gap-unison-research-shows --- Cite as: UK local government funding crisis. CLSTR, https://clstr.news/situations/uk-local-government-funding-crisis