Nearly one in 10 councils in England have warned they will go bust in the next 12 months as authorities plan widespread cuts, above-inflation council tax rises and across-the-board increases to resident charges, a survey has revealed.
The Local Government Information Unit (LGIU) annual poll of local authority leaders and top managers reveals a near-total collapse in confidence in the financial viability of councils as they grapple with “desperate” pressures and shrinking budgets.
It warns that council insolvencies – once extremely rare and triggered by unusual special factors such as the failure of commercial investments – should now be regarded as “normal occurrences” likely to hit even well run authorities.
The LGIU chief…
