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Council “bankruptcy”?

quote
As many as 30 councils are at risk of bankruptcy and the UK’s local government funding system is “completely broken”, according to a new survey of the sector.

Four councils – Slough, Croydon, Thurrock and most recently Woking – have declared themselves bankrupt in recent years, but according to a survey of 47 local authorities in the North, the Midlands and on the south coast, more may follow.

The study found that roughly a third of the authorities are experiencing severe strain on their finances, with five currently deciding whether to issue a section 114 notice of their inability to balance their annual budget in 2023-24.

A further nine councils that are members of the Special Interest Group of Municipal Authorities (Sigoma) said they may have to declare bankruptcy next year.
 
the old LRB article that is sill worth a read

in northamptonshire local elections were suspended for I think one year, possibly 2, and split into two unitary authorities. It could just be me but I think the way one authority contains the poorest bits and the other the wealthier areas seems a deliberate choice. But then its not that geographically simple because you've got the wealthy villages and that all over so I'm not sure.
 
the old LRB article that is sill worth a read

in northamptonshire local elections were suspended for I think one year, possibly 2, and split into two unitary authorities. It could just be me but I think the way one authority contains the poorest bits and the other the wealthier areas seems a deliberate choice. But then its not that geographically simple because you've got the wealthy villages and that all over so I'm not sure.

Spunked all the money up the wall on a new head quarters and then was none left for basic things like services.
 
THis is the only book ive seen on this topic

In this provocative new book, Peter Latham argues that the UK Conservative Government’s devolution agenda conceals their real intention: to complete the privatisation of local government and other public services.
Using illustrative examples from across the UK, including the so-called ‘Northern Powerhouse’ and the Midlands, the book explains the far-reaching implications of the reorganisation of local government that is already affecting vital public services, including education, health, housing and policing.
Proposing an overhaul of the taxation system to include land value taxation, a wealth tax and more progressive income tax to fund an increase in directly provided services, the author argues that a new basis for federal, regional and local democracy is vital.
 
So a buyout from a neighbouring authority isn’t likely?
I don't think there is anything in the legislation that would prevent that, there would have to be a process and validation locally and signed off somewhere within the government. Some councils merged or formed partnerships ie one council running children's services across two councils, another overseeing capital works in another, in the Cameron /Lib Dem era.
 
it's just insane. I can't see how any council (especially in poorer parts of the country) can make more cuts at this stage and still be capable of delivering statutory services. And there's pretty much nothing they can do to raise more money given the restrictions on how council tax works. And the cumulative effect of cuts at the local level is shabbier and shabbier places, dilapidated parks and public realm, anti social behaviour because no youth facilities etc which puts places on a downwards spiral when there's supposedly 'levelling up'.
 
THis is the only book ive seen on this topic

In this provocative new book, Peter Latham argues that the UK Conservative Government’s devolution agenda conceals their real intention: to complete the privatisation of local government and other public services.
Using illustrative examples from across the UK, including the so-called ‘Northern Powerhouse’ and the Midlands, the book explains the far-reaching implications of the reorganisation of local government that is already affecting vital public services, including education, health, housing and policing.
Proposing an overhaul of the taxation system to include land value taxation, a wealth tax and more progressive income tax to fund an increase in directly provided services, the author argues that a new basis for federal, regional and local democracy is vital.

The high water of 'commissioning councils' ie councils that contract services in ie privatisation, was several years ago tbh. Barnet , at the beginning of the Cameron era I think, was one of the first to experiment with this on a wholesale basis and the universal council speak at that time was generally that of councils 'enabling services'.
Things have moved on from that and there is a wider range of how services are being provided with many being brought back in house ( refuse services are vote winners in many councils regardless of political leadership) , social enterprises delivering services, other councils delivering services for other councils, local authority trading companies ( sometimes owned by more than one council, councils uniting to deliver services ( Greater Manchester on health and transport is an example) and of course outsourcing.
 
The high water of 'commissioning councils' ie councils that contract services in ie privatisation, was several years ago tbh. Barnet , at the beginning of the Cameron era I think, was one of the first to experiment with this on a wholesale basis and the universal council speak at that time was generally that of councils 'enabling services'.
Things have moved on from that and there is a wider range of how services are being provided with many being brought back in house ( refuse services are vote winners in many councils regardless of political leadership) , social enterprises delivering services, other councils delivering services for other councils, local authority trading companies ( sometimes owned by more than one council, councils uniting to deliver services ( Greater Manchester on health and transport is an example) and of course outsourcing.
i dont doubt you on that
...i think the general mode of what is as i understand taking away councils money and getting them to strip their own assetts remains though - up to the point that they still have assetts to strip. i'm thinking particuarly in regards selling off property and land to developers
 
i dont doubt you on that
...i think the general mode of what is as i understand taking away councils money and getting them to strip their own assetts remains though - up to the point that they still have assetts to strip. i'm thinking particuarly in regards selling off property and land to developers
I really think most councils have done this already to a large extent. Partly to make money, but also to try to get housing built under pressure to meet targets. I had a look at my local authority's asset register recently, and it's mostly tiny pockets of unusable land other than parks and nature reserves.
 
i dont doubt you on that
...i think the general mode of what is as i understand taking away councils money and getting them to strip their own assetts remains though - up to the point that they still have assetts to strip. i'm thinking particuarly in regards selling off property and land to developers
Yes many council are asset lite now . There was a brief trend for a few councils ( Stockport did it but I am sure we copied a council in the South) to use reserves to buy land and then sell to developers at a profit or for them to finance developments .
 
Relevant article last week:


"But the fiasco in Woking illustrates a wider point: the books of local government in much of the country are in dire straits. Just 14% of council leaders say their finances are sustainable, according to a survey by the Local Government Association, which covers England....Several more councils look as if they could have to issue section 114 notices. These used to be vanishingly rare occurrences. This year, it seems, there will be a flurry of them around the country."
 
All part of the plan to sell publicly owned assets for private gains.
I just don't buy this at this stage of austerity. Every canny council has already sold off and sweated its assets as much as possible. I think its just total indifference by a government that lives in nice places with a high council tax base that just makes an automatic assumption that local authorities are inefficient flabby beasts when lots have lost like 60% of funding since 2010. I don't think they have a plan, other than they will use these crises to run loads of councils directly from Whitehall and run down local democracy. It's genuinely mystifying / contradictory, given that this government has devolved powers in many places, and many of the bankrupt councils are Tory.
 
I just don't buy this at this stage of austerity. Every canny council has already sold off and sweated its assets as much as possible. I think its just total indifference by a government that lives in nice places with a high council tax base that just makes an automatic assumption that local authorities are inefficient flabby beasts when lots have lost like 60% of funding since 2010. I don't think they have a plan, other than they will use these crises to run loads of councils directly from Whitehall and run down local democracy. It's genuinely mystifying / contradictory, given that this government has devolved powers in many places, and many of the bankrupt councils are Tory.
if they can't sell them to OCP ...

this also has the same kind of smell as the whole Circle / Hinchingbrook hospital debacle
 
Cornwall loaned 20m to Thurrock wherever that is. Never understand why
There appears to be quite a big market in councils lending money to each other short-term. Mainly it seems to be because it's seen as a relatively safe place to put your reserves, and the borrowing council can generally get the loan at a cheaper rate than the main alternative (public works lending board). Can't see that there's anything that wrong with it in principle, it's like mates helping each other out.
 
Cornwall loaned 20m to Thurrock wherever that is. Never understand why

Maybe it helps Cornwall offload some budget surplus before year's end so the government doesn't cut their funding even further next year.

Or maybe they're both just tory councils trying to avoid making a tory government look bad for presiding over the collapse of local authorities.

Local authorities do spend money in silly ways though. For some reason Manchester city council owns Stanstead airport.
 
There appears to be quite a big market in councils lending money to each other short-term. Mainly it seems to be because it's seen as a relatively safe place to put your reserves, and the borrowing council can generally get the loan at a cheaper rate than the main alternative (public works lending board). Can't see that there's anything that wrong with it in principle, it's like mates helping each other out.
I gey the concept but cornwall has been reducing every single year. Cut 9% of salary after years of cuts, including me. Worked with various councils and all seem to need to cut everything to fuck then increase council tax to cover ASC. Then people whinge about bins. Not sure what happens with the money now Thurrock are fucked tho.
 
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