Councils are facing bankruptcy in England and Wales

Following the news that Nottingham City Council was the latest local authority to declare itself effectively bankrupt, local leaders across England and Wales have warned central government of painful cuts to frontline services. Here's more on the story.

Local authorities in England have said that due to a lack of funding announced in the autumn statement, that many face effective bankruptcy. This means they would have to resort to not using their budgets for anything that is not required by law.

Over in Wales, there are similar concerns, as the projections show that council services could cost around four hundred million pounds more than their budgets allow. Back in September Birmingham City Council declared itself bankrupt, putting a pause on all but essential spending. More recently, Nottingham City Council had to do the same.

Reasons contributing to the crisis are thought to be inflation, along with a growing demand for services. The government has said that they are open to talks with councils about their financial issues, and are due to outline funding for local councils for twenty twenty four later this month.