RISHI Sunak is set to be asked to dish out more cash for Southampton City Council amid a warning the authority is facing a £21m budget shortfall.

The Labour administration led by Councillor Satvir Kaur will ask the Prime Minister for "fair and sustainable funding" after a vote was held on sending the request.

It comes as the authority's former chief finance officer warned last month that a bankruptcy notice could be issued if finances were not managed diligently.

Hampshire County Council has previously warned Government it could declare bankruptcy if ministers did not fairly finance local authorities.

Councillor Eamonn Keogh, cabinet member for transport, proposed sending the letter to Mr Sunak.

In a motion to full council last week he said: “Councils up and down the country are facing unprecedented financial pressures which are not of their own making but due to national policy; Southampton is no exception.

“Government measures to reduce public sector spending in the previous decade have seen a significant reduction in local government funding, with the council’s settlement funding assessment reducing by almost a half.

“What is clearly needed is a long-term plan from the national government to change their direction and offer fairer, long-term funding to local authorities.”

The Tory opposition opposed the motion proposing the council send a letter to Mr Sunak.

Councillor John Hannides said: “There is millions of government funding coming through the council and we know that the government funds a range of services that this council undertakes for our residents.

“Over the past 10 years, additional funding from the government has been in excess of £800m to this council.

“It’s not true to say that funding has been slashed – it’s just coming through in a different way.”

Southampton's former finance chief warned in February that the cost of living crisis, energy and fuel cost rises, pay awards and interest rates had added to budget pressures.

His report warned the council could issue a section 114 notice - effectively declaring bankruptcy.

The report said: "Very stringent, careful and diligent management of the council’s financial resources will be necessary to ensure the council is not required to undertake the severe forms of actions on the general fund, such as S114 notices and reliance on extra-ordinary measures of help from Government that an increasing number of councils are having to resort to in order to balance their budgets."

Labour passed a balanced budget at full council amid former chief finance officer John Harrison's warning the council was "spending unsustainably".

His report said the council faced a £21.22m shortfall in 2024/25, £22.56m in 2025/26 and £24.79m in 2026/27.

The report warned the council's spending could be "critically impacted to the point that a balanced budget will be challenging to achieve".

Labour disputes describing the council's financial situation as facing bankruptcy.