Public accounts committee warns that some councils may have to be bailed out unless plans are made to prop them up
On the list of priorities the unemployed and disabled in this scenario are going to be shafted…
Dozens of local councils close to collapse, says MPs' committee
Dozens of local authorities are on the brink of financial collapse but ministers have failed to come up with adequate contingency plans to prop up vital services, according to a committee of MPs.
The public accounts committee says in a report that the coalition government does not fully understand the impact of significant cuts to council budgets. If funding continues to decline while demand for services rises, the MPs believe it increases the likelihood that councils will have to be bailed out.
The report follows warnings from the National Audit Office that nearly one in eight councils (12%), including Birmingham city and West Somerset district, are at risk of being unable to balance their budgets and nearly one in 10 are under "high financial stress".
Guardian
On the list of priorities the unemployed and disabled in this scenario are going to be shafted…
Dozens of local councils close to collapse, says MPs' committee
Dozens of local authorities are on the brink of financial collapse but ministers have failed to come up with adequate contingency plans to prop up vital services, according to a committee of MPs.
The public accounts committee says in a report that the coalition government does not fully understand the impact of significant cuts to council budgets. If funding continues to decline while demand for services rises, the MPs believe it increases the likelihood that councils will have to be bailed out.
The report follows warnings from the National Audit Office that nearly one in eight councils (12%), including Birmingham city and West Somerset district, are at risk of being unable to balance their budgets and nearly one in 10 are under "high financial stress".
Guardian
