As many as 30 councils are at risk of bankruptcy and the UK’s local government funding system is “completely broken”, according to a new survey of the sector.
Four councils – Slough, Croydon, Thurrock and most recently Woking – have declared themselves bankrupt in recent years, but according to a survey of 47 local authorities in the North, the Midlands and on the south coast, more may follow.
The study found that roughly a third of the authorities are experiencing severe strain on their finances, with five currently deciding whether to issue a section 114 notice of their inability to balance their annual budget in 2023-24.
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