UK council budget gaps: what Bristol, Brighton and other councils face

Budget gaps are showing up in council papers from Oxfordshire to Bristol, including a forecast £15m overspend in Bristol’s current budget and larger gaps forecast in later years. Councils say they expect higher council tax, new charges and tougher choices on services such as social care. This guide sets out what the published figures show and what they could mean for your household.

What the councils say the 2026 funding changes mean in plain English

Oxfordshire County Council said a major change in how government shares out grant money means it faces a £5.4m gap in 2026/27 and at least £14m of further savings in 2027/28. It said it was told its allocation only just before Christmas, and that by 2028/29 central government funding falls by £24.1m. Excluding a £3.1m rise for the Families First Partnership, which it must spend on preventative children’s services, the reduction is £27.2m.

Cllr Dan Levy, the council’s cabinet member for finance, said: “The government has cut grant funding and assumed the council will make up the difference with maximum Council Tax rises.” He said the council accepted the aim of directing more money to areas of higher deprivation but did not think it should come at Oxfordshire’s expense.

Westmorland and Furness Council makes a similar case. Deputy leader Cllr Andrew Jarvis said the settlement cuts its government support by about a third over the funding cycle, “leaving us with a shortfall of £12m for next year increasing to £43m by 2028/29”. These are the councils’ own accounts of the settlement, and the government’s response to them is not included in the material this report draws on. In Bristol, Labour councillor Tom Blenkinsop said the government has given councils more than previous ones, including potentially writing off almost £100m of special educational needs deficit, while Green councillors said “austerity hasn’t ended”.

Who pays more: council tax increases 2026-2027 and new charges

For most households the first effect is a bigger bill. Oxfordshire proposes a 4.99% council tax rise for 2026/27 and said the government assumed it would set the same rise in each of the next three years when working out its grant. Westmorland and Furness’s cabinet recommended 4.99% to its Full Council, which meets on 26 February. Bristol City Council’s consultation covers a 5% rise next April.

Charges are also set to rise. Westmorland and Furness recommended a new £60 annual charge per bin for garden waste, which residents would pay by subscription only if they choose the service. The council had hoped the first bin would stay free, but Cllr Jarvis said it had “no choice” but to charge for it. It also recommended car park charges up by around 10%, higher Windermere Ferry charges with the Blue Badge exemption removed, and other fees rising in line with inflation.

Nobody in these papers says services are being cut across the board yet. Oxfordshire said it has options for 2026/27 that do not affect services, but warned that will not last. Cllr Levy said people should be “under absolutely no illusion” about later years.

Which UK councils are facing financial pressure

The pressure is not limited to one region or one party. The table sets out the figures each source gave, which are not directly comparable because they cover different years and measures.

In Bristol and Brighton, the cause named is the cost of adult and children’s social care. Bristol’s Green deputy leader, Cllr Heather Mack, said out-of-area placements for children in care cannot be stopped: “It would be illegal, it would be cruel.” Brighton’s Labour deputy leader, Jacob Taylor, said the council would not “shut all of our libraries, all our nursery provisions” to balance the books, and instead plans a transformation programme with exceptional financial support as a bridge.

A worked example: what a rise could cost you

These figures are illustrations, not council data. Suppose, for simplicity, a household’s council tax is £2,000 a year and the whole bill is the council’s share. A 4.99% rise adds £99.80, and a 5% rise adds £100. In practice the percentages apply to the council’s share only, so your actual increase may be smaller.

If Oxfordshire raised its share by 4.99% in each of the next three years, as the government has assumed, that £2,000 would reach about £2,314.57 by the third year, roughly £315 more than today. In Westmorland and Furness, a household that wants garden waste collected would add the £60 subscription on top, taking the illustrative first-year extra to £159.80. A £3 car park stay rising by 10% would cost about £3.30.

What to do now

Check your council’s budget timetable, because several decisions are close. Oxfordshire’s cabinet is due to set its budget on 10 February and Westmorland and Furness’s Full Council meets on 26 February. Bristol’s public consultation was scheduled to run until 25 November and could be completed on its website, so check the council’s site for its current status. If you use garden waste collections or council car parks, work out what the new charges would add over a year.

It is also worth reading the budget papers for the services you rely on, such as libraries, bus information or children’s services, and telling your councillor what matters most. Bristol leader Cllr Tony Dyer said residents can help shape the budget through the consultation, adding: “Every pound spent in one area is a pound unavailable elsewhere.”

Your questions answered

Which councils are in financial trouble?

The sources here name Bristol, Brighton and Hove, Westmorland and Furness and Oxfordshire as facing gaps. They are examples, not a full list. Brighton and Hove said it needs up to £30m of exceptional support, and East Sussex received £70m last year, according to Brighton’s deputy leader.

How much will council tax go up in 2026-2027?

Oxfordshire proposes 4.99% and Westmorland and Furness recommended 4.99%, both pending council votes. Bristol’s consultation covers 5% from next April. Your own council’s rate may differ.

How much has council funding changed?

There is no single figure in these sources. Westmorland and Furness says its government support falls by about a third over the funding cycle, and Oxfordshire puts its reduction at £24.1m by 2028/29. Labour councillors in Bristol say government has provided more money overall, while Green councillors disagree.