Councils at Breaking Point: Funding Crisis Looms
Update: 2025-12-08
Description
Councils across England and Wales face financial crisis, with more expected to go bankrupt due to government funding cuts. Major cities like Birmingham, along with Croydon and Thurrock in Essex, have already struggled to meet financial obligations. The Local Government Association highlights unrelenting cost and demand pressures, especially in areas like childrens and adult social care, homelessness, and transport for special needs children. The government has agreed to a three-year funding deal, but the exact formula for distribution remains unknown, making it difficult for councils to plan. Experts predict that half of Londons boroughs could need emergency financial support by 2028 to avoid bankruptcy.
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