Birmingham is the latest in a stream of councils in England to announce it has run out of cash
Jeremy Hunt and Rishi Sunak must provide more funding to local authorities in the forthcoming Autumn Statement if they are to avoid more Birmingham-style bankruptcies, council bosses have warned.
Concerns have been raised over the viability of other councils, such as Kent, Hastings, Derby, Southampton and Guildford, prompting town halls to demand more funding from the Treasury. And he added: “We are calling for further action from the government in the Autumn Statement, otherwise county authorities could face unpalatable decisions further down the line.”
According to the University of Birmingham, Birmingham City Council alone had to make austerity cuts of £736 million, leading to its spending power being reduced by 36.3 per cent.could now be facing a hike in council tax, West Midlands mayor Andy Street has warned, after the City Council declared itself effectively bankrupt.
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