Stoke-on-Trent council says rising demand for its help and high inflation cause the bleak situation.
, means a local authority is in financial distress, cannot balance its budget and is effectively bankrupt.
These led to a £13m forecast shortfall which has been reduced to £8.5m through "budget management actions", council officials said., with about 1,120 children in care in July, compared to 2017 when 653 youngsters were in care. Demand for its help from residents was expected to continue and, without more funding from the government, they added there was "significant risk" the council would need to consider issuing a Section 114 notice.
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