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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.

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