Research has uncovered a £3.5bn shortfall facing councils over the next financial year.

Analysis by trade union Unison found just 14% of local authorities in England, Scotland and Wales said they were on course for a balanced budget in 2024-25.

It discovered that 114 councils were at least £10m short of their planned spending requirements – and 15 were £40m short.

Birmingham City and Thurrock councils, which have both recently issued section 114 notices, face the highest funding gaps - £164m and £157m respectively.

The next highest funding shortfalls were reported by Hampshire CC (£82m).

Sheffield City Council, which faces a major equal pay claim, and Bradford MDC, were next – both with shortfalls of around £72m.

Unison general secretary Christina McAnea said: ‘Councils are on their knees.

‘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.'