Worcestershre County Council facing bankruptcy over £33.6m gap

A council facing a £33.6m funding gap will effectively declare itself bankrupt unless the government allows it exceptional financial support.

Worcestershire County Council is to ask the government for a “capitalisation direction” – described by the Institute for Government as a move that allows them to sell assets or borrow to fund day-to-day costs.

Papers for a cabinet meeting on 16 January said the council needed £33.6m in 2025-26 and a further £43.6m in 2026-27.

The Ministry of Housing, Communities and Local Government (MHCLG) said it was injecting £69bn of…