Almost a fifth of England’s council bosses have warned they are running out of money so badly that they will become effectively bankrupt this year or next. A report by the Local Government Association also indicates that nearly half think they will not be able to ensure the delivery of essential services from 2024 to 2025.
Some councils have already run out of funds. Nottingham and Birmingham councils were the latest to issue what are known as “section 114 notices”. These notices mean a council’s expected income is not enough to cover what it plans to spend – and that it cannot find a solution by itself.
