Birmingham Council Bankrupt - tip of the iceberg?

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Amity Island

Amity Island

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Reports have also suggested that the council, which issued a Section 114 notice on September 5, effectively declaring it was bankrupt, may be forced to sell off assets, including its stake in Birmingham Airport. The notice was issued because the council will not be able to balance its budget in the next financial year. It bans all new spending with the exception of “protecting vulnerable people, statutory services and pre-existing commitments”.

A government source said: “The scale of mismanagement at Birmingham City Council is much worse than we thought.

“The council is failing in its basic duties and letting down local residents. This cannot go on. The Secretary of State will update Parliament on next steps to get the council back on track in the interests of residents.”

www.telegraph.co.uk

Birmingham council mismanagement ‘much worse than Government thought’

Michael Gove considers appointing commissioners to take over day-to-day running of cash-strapped authority
www.telegraph.co.uk www.telegraph.co.uk
 
My council (Coventry) is also precariously close to the edge as well and has been having to draw on reserves to balance the budget - the increase costs are mainly due to inflation and increases costs of social care, which they cannot really control. Funding has also been cut from central government which makes it hard to do things like improve infrastructure to help attract business - places like Cov and Brum have large areas of deprivation as well, which doesn't help.
 
Nottingham City Council has declared itself essentially bankrupt.

This means it will have to stop all spending apart from services they have to provide by law.

 
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