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The Guardian - UK
The Guardian - UK
Politics
Rachel Hall

One in four English councils ‘may seek bankruptcy bailout in next two years’

People walking past Birmingham's Council House, a Victorian building in the classical style
Birmingham council was one of 19 given exceptional financial support (EFS) in February to meet their legal duty to balance their books. Photograph: Christopher Thomond/The Guardian

One in four English councils could go bankrupt unless they are bailed out by the government in the next two years, a survey has revealed.

Councils are warning of a “worsening crisis” that could result in cuts to vital public services amid a funding gap of more than £2bn next year, according to the survey of chief executives conducted by the Local Government Association.

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