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The Guardian - UK
The Guardian - UK
Politics
Patrick Butler Social policy editor

Inflation could push English councils into bankruptcy, say leaders

Inflation LGA James Jamieson
Services such as leisure centres, libraries and road repairs may need to be cut.
Services such as leisure centres, libraries and road repairs may need to be cut. Photograph: Jacob King/PA Media

Council leaders in England have said a multibillion-pound financial crisis caused by rising inflation could make local services unviable and even lead to local authorities going bankrupt, unless the government offers emergency funding.

The cross-party Local Government Association (LGA) said local services that were seemingly secure just three months ago were now at risk of closure or cuts as councils scramble to manage an unforeseen £2.4bn rise in energy and pay costs.

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