Rise in bailout requests ‘likely’ as councils warn of bankruptcy threat

A total of 18 councils were given exceptional financial support from the Government in February (PA) - (PA Wire)

The perilous state of council finances means one in four local authorities could be forced to request emergency support from the Government to avoid effective bankruptcy over the next two years, according to research.

A survey of council chief executives suggests projected funding shortfalls, which are expected to total more than £2 billion next year, will threaten the viability of many councils in England without measures in the Budget to ensure stability and protect vital services.