Councils to use AI to meet £37.6m funding gap

Two local authorities will use artificial intelligence (AI) to help bridge multi-million pound budget gaps.

West Northamptonshire Council (WNC) identified a £24m budget gap for 2027/28, while North Northamptonshire Council (NNC) will need to find £13.6m.

Both councils have started cost cutting measures including using artificial intelligence (AI) across services like adult social care — an area where they have previously seen a spending increase.

A study by the BBC Shared Data Unit identified 218 upper-tier councils would need to make a total of £3.2bn in cuts.

Both councils, controlled by Reform UK, have introduced AI in adult social care to improve and make services more efficient.

They have seen a rise in spending across adult social care and children's services which has put pressure on other services.

• Councils turn to AI in attempt to fill £4bn black hole

At NNC, AI is being used to transcribe conversations and save staff time so they can spend longer prioritising residents' care and support needs.

WNC has trialled using an AI chatbot on WhatsApp for adult social care questions, using it to screen initial requests for education, health and care plans to reduce the backlog and has approved technology for adults to be supported to live independently with the help of digital tools.

Caroline Abrahams, charity director at Age UK, raised concerns.

She said there is an "inevitable risk" of inaccuracy or misunderstanding with transcription and said any technology being incorporated into care for elderly or vulnerable adults needs to be designed to meet their needs.

A Ministry of Housing, Communities and Local Government spokesperson said the government does not "mandate" how local authorities use AI but encourages its use to "alleviate pressures".

In the WNC 2026/27 budget a number of efficiency savings and income generation measures have been approved including a 4.95% increase in council tax, higher charges for garden waste services and parking and a decrease in budgets for things like community grants.

A WNC spokesman said: "We have a robust and prudent approach to financial management and continuously review opportunities to improve services and reduce costs to taxpayers while protecting services for residents as far as possible."

Graham Cheatley, deputy leader of the council and executive member for finance, efficiency and change, said: "The council is also calling on central government to introduce a funding system that better reflects the growing pressures facing local authorities."

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