Welsh councils have a hole in their finances exceeding £352m collectively for the coming financial year, making it extremely likely they will have to make huge cuts in essential services and jobs, says a report published by UNISON.

The figures, based on financial information gathered from Welsh local authorities show the true scale of the dire state of local government funding, says the union.

Many authorities will be forced to consider selling land and buildings, as well as slash services for the vulnerable and vital community resources such as waste collection, libraries and leisure centres, UNISON warns.

The biggest funding gaps in the country are at Caerphilly County Borough Council and Cardiff Council, which are both £37m short of their spending needs for next year.

Other authorities with severe cash shortfalls, according to UNISON’s research, include Flintshire County Council on £32m and Carmarthenshire County Council, which is short some £29m.

Pembrokeshire Council has a shortfall of 13,400,000.

The UNISON research, Councils Under Pressure, shows that all bar six of the 22 the local authorities in Wales are at least £10m short of their planned spending requirements, while seven are as much as £20m adrift.

The combined shortfall total of £352.1m in 2024/25 means Welsh local authorities will be forced to rely on virtually non-existent cash reserves. All are likely to have to make cuts to services and their workforces, says UNISON.

Regardless of their overall political control, the future is bleak for councils with increased energy costs, a decade and more of reduced government funding and inflation all worsening their financial position, the union adds.

The huge scale of the budget shortfall across local government means a growing number of councils are teetering on the brink, UNISON warns.

This precarious state of council budgets couldn’t come at a worse time with thousands of families ever more reliant on community services due to cost of living pressures, adds UNISON.

The shortfalls increase the risk that many authorities will consider raising their council tax as high as possible next time, says the union.

Most councils are responding to the crisis by cutting services and activities. Newport City Council has already cut back on some bin collections and rural bus services across Wales are at risk because of the lack of funding.

UNISON says Jeremy Hunt must provide extra grant funding in the chancellor's autumn statement to help weather the immediate challenges or local authorities and their communities will no longer be able to cope.

Work must also be done at pace to reform how councils are funded to tackle the huge reduction in central government resources since 2010, urges the union.

UNISON Wales regional secretary Jess Turner said: “Communities rely on their local authorities for all manner of essential services, such as waste collection, social care, road repairs and parks and other open spaces.

“But councils are on their knees. Ministers seem to care very little about public services and local government has been hit hard over very many years.

“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.”