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

Local councils in England at risk of insolvency over £3bn funding black hole

Woking borough council offices
Woking council recently declared bankruptcy. Photograph: Leon Neal/Getty Images

More councils could be at risk of insolvency over the coming months as local authorities in England struggle to fill a £3bn funding black hole caused by inflationary costs and soaring demand for services, town hall leaders have said.

According to the Local Government Association (LGA), several councils are in “an endgame” where, without an increase in funding, they face the prospect of taking increasingly drastic action to meet their legal duty to balance the books.

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