Councils in England in crisis as Birmingham ‘declares itself bankrupt’

The Council House in Birmingham, where the city council has in effect declared itself bankrupt after issuing a section 114 notice. Photograph: Christopher Thomond/The Guardian

The crisis in local authorities was laid bare on Tuesday as Birmingham city council in effect declared itself bankrupt, with experts warning that others across the UK were now living “hand to mouth”.

The council’s head of finance took the dramatic decision on Tuesday to issue a section 114 notice, indicating that it did not have the resources to balance its books.