What is council tax and the way a lot did it go up in April? | EUROtoday

Councils can’t technically go bankrupt, but when they can not steadiness their funds for the monetary 12 months, they’ll difficulty what is known as a piece 114 discover., exterior

This means they can not decide to most new spending, and residents might see diminished companies, comparable to fewer bin collections or cuts to libraries.

Before 2018, solely two councils had issued a piece 114. Twelve have been issued since.

Birmingham City Council went bust in 2023, with a £760m black gap. It adopted Woking Council, Thurrock and Croydon (for the third time).

Numerous native authorities in England haven’t issued part 114 notices however are receiving so-called “exceptional financial support”, exterior to assist handle their budgets.

Middlesbrough Council is certainly one of 19 authorities allowed to borrow cash to fund day-to-day spending in 2024-25.