Skip to main content
The Morning Star Shop
Councils warn of looming bankruptcy wave
BAD NEWS: Jeremy Hunt

COUNCILS across England are lurching towards bankruptcy because of government cuts, two surveys found yesterday.

The risk of bankruptcy is escalating after Chancellor Jeremy Hunt’s Autumn Statement, which made no provision for local authorities to cope with rising inflation.

A survey by the Local Government Association (LGA) found that 20 per cent of council leaders and chief executives believe it likely that they will have to legally declare they cannot balance their books over the next year.

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Former Labour Party leader, Jeremy Corbyn M.P. (left) and Zarah Sultana, MP for Coventry South on the picket line outside London Euston train station. Picture date: Thursday August 18, 2022
Parliamentary Politics / 24 July 2025
24 July 2025

Corbyn and Sultana commit to launching new socialist party

Former home secretary James Cleverly delivers a speech at The Institute for Public Policy (IPPR) in London, July 15, 2025
Tory Party / 22 July 2025
22 July 2025
Prime Minister Keir Starmer delivers a speech at the Government's first Civil Society Summit in London, July 17, 2025
Eyes Left / 23 July 2025
23 July 2025

If Labour MPs who rebelled over the welfare reforms expected to be listened to, they shouldn’t have underestimated the vindictiveness of the Starmer regime. But a new left party that might rehome them is yet to be established, writes ANDREW MURRAY
 

Prime Minister Sir Keir Starmer delivers a speech at the government's first Civil Society Summit in London, which aims to bring together leaders from charities, expert groups, communities, and government, July 17, 2025
Britain / 17 July 2025
17 July 2025

Starmer doubles down on witch hunt by suspending the whip from Diane Abbott