"Two Tory-run councils warn PM of possible bankruptcy
Leaders of Kent and Hampshire county councils say even ‘drastic cuts’ to services will not be enough
Two of England’s largest Tory-run local authorities have warned the prime minister, Rishi Sunak, that they will be forced to declare bankruptcy within the next few months because of the unprecedented financial crisis enveloping both councils.
The leaders of Kent and Hampshire county councils said even “drastic cuts” to current services would not be enough to patch up the huge holes in their budgets created by soaring inflation and rising pressures in adult and children’s social care.
In a strongly worded joint letter to Sunak, Kent leader, Roger Gough, and Hampshire leader, Rob Humby, said while they recognised the difficult national economic circumstances, “we cannot sit by and let two great counties sleepwalk into a financial disaster”.
Ministers effectively had a choice, the letter said: to fund councils properly or change the law to remove the “outdated and under-resourced” legal obligation on town halls to provide services such as libraries and home-to-school transport.
Both councils faced budget deficits over the next few years “of a scale that has never been seen before”, they said, and unless ministers stepped in with emergency help and a long-term funding plan, they would be “likely to be considering section 114 [effective bankruptcy] notices in the next year or so”.
The letter said: “The problem is simple: the additional money that we can raise from council tax and business rates barely covers the normal inflationary pressures that we face each year. This leaves significant growth, particularly in adults’ and children’s social care, totally unfunded."
https://www.theguardian.com/society/...ble-bankruptcy
Rishi will create new Local Totally-Not-Income Tax for them...
Leaders of Kent and Hampshire county councils say even ‘drastic cuts’ to services will not be enough
Two of England’s largest Tory-run local authorities have warned the prime minister, Rishi Sunak, that they will be forced to declare bankruptcy within the next few months because of the unprecedented financial crisis enveloping both councils.
The leaders of Kent and Hampshire county councils said even “drastic cuts” to current services would not be enough to patch up the huge holes in their budgets created by soaring inflation and rising pressures in adult and children’s social care.
In a strongly worded joint letter to Sunak, Kent leader, Roger Gough, and Hampshire leader, Rob Humby, said while they recognised the difficult national economic circumstances, “we cannot sit by and let two great counties sleepwalk into a financial disaster”.
Ministers effectively had a choice, the letter said: to fund councils properly or change the law to remove the “outdated and under-resourced” legal obligation on town halls to provide services such as libraries and home-to-school transport.
Both councils faced budget deficits over the next few years “of a scale that has never been seen before”, they said, and unless ministers stepped in with emergency help and a long-term funding plan, they would be “likely to be considering section 114 [effective bankruptcy] notices in the next year or so”.
The letter said: “The problem is simple: the additional money that we can raise from council tax and business rates barely covers the normal inflationary pressures that we face each year. This leaves significant growth, particularly in adults’ and children’s social care, totally unfunded."
https://www.theguardian.com/society/...ble-bankruptcy
Rishi will create new Local Totally-Not-Income Tax for them...
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