Good morning. More English councils have declared effective bankruptcy in the last 18 months than did so in the previous 30 years. One in five council bosses say it is likely they will follow suit by March next year. Local authorities have faced severe financial difficulties for the last decade or more – but now, reeling from the same inflationary pressures that are pushing the cost of living up for everyone, they are facing a tipping point.
As John Harris noted earlier this month, the route to this state of affairs is not mysterious: it is the result of a 40% real-terms cut in central funding between 2010 and 2020. This week, a Guardian series, Councils in crisis, has examined the fallout from that situation. Richard Partington has already reported that a £2bn hidden tax rise will be landing within a matter of months. Now he reveals that councils are to be encouraged to sell publicly owned buildings and other assets worth up to £23bn.
