At least 26 UK councils are at risk of “effective bankruptcy” within the next two years.
A survey of members of the Special Interest Group of Municipal Authorities, which has 47 councils in northern England, the Midlands and on the south coast, revealed mounting anxiety that rising costs will blow irreparable holes in budgets that fund local services.
Five said they were in such dire financial straits that they were considering issuing a notice of their inability to balance their annual budget for 2023-24.
A further nine Sigoma members said they may have to in effect declare bankruptcy next year.
Sigoma said it understood that at least 12 other councils across the country, which are not part of the group, were considering issuing a section 114 notice – an official declaration of inability to balance their books – in 2023-24.
