Warning one in 10 county councils face effective bankruptcy

Leaders of local governments have warned that one in 10 county councils in England are facing effective bankruptcy – putting vital services at risk.

In September Birmingham City Council was forced to slash spending after declaring itself effectively bankrupt. 

A survey by the County Councils Network suggests more local authorities fear they could be next. 

They are calling for emergency funding from the government to stave off financial collapse.

The government said it had already made £5.1bn extra available to local authorities for 2022/23 – and was ready to talk to any council concerned about its financial position.

Birmingham City Council faces a bill of up to £760m following equal pay 

claims and a flawed IT system that spiralled over budget, leading to questions about the council’s governance.

However, local government leaders are warning other, “well-managed” county councils could follow suit.