North East councils are facing an estimated funding gap of more than £121.5million in the next financial year, according to research from a leading trade union.

Data published by UNISON revealed the councils that make up the North East combined authority – known as the LA7 – face a combined estimated deficit of £121.595million between them. Across the wider North East, that figure rises to £157.1million.

The figures were obtained using a combination of data gathered through Freedom of Information requests and an analysis of councils’ published financial strategy documents. In total, 171 out of 370 councils provided funding gap figures via emails, while others directed researchers to financial documents.

The union has called on the Government to take action to rectify the issue. It has warned that failing to do do “risks the widespread collapse of local Government”.

placeholder image — The union has called on the Government to take action to rectify the issue.

Gateshead Council has the largest predicted deficit at just under £36million, followed by Newcastle City Council (£23.8million) and Durham County Council (£16.8million). South Tyneside has the smallest deficit at £8.8million, followed by North Tyneside (£9.7million) and Sunderland City Council (£11.6million). Northumberland County Council is in the middle with just under £15million.

The funding gap measures the difference between each council’s income and the amount needed to maintain promised service levels.

UNISON Northern regional secretary, Clare Williams said: “Countless essential services and very many vital jobs are at risk, with terrible consequences for communities across the North East.

“Only swift and decisive action to stabilise local finances will do. As tough as the financial situation may be, ministers cannot ignore the terrible plight of authorities of every political persuasion.”