Councils in need of further government support

New analysis from the BBC has found that some of the largest councils in the UK say they may have to declare themselves effectively bankrupt unless the government agrees to further support.

With nearly 150 authorities having forecast a combined budget shortfall of at least £3.2 billion, the BBC says that five councils said emergency spending controls - so-called section 114 notices - could be needed due to the impact of coronavirus. This would see them declare themselves effectively bankrupt.

They include some of the UK's largest unitary authorities - Leeds, Wiltshire, Trafford, Tameside and Barnet.

The government has already provided £3.2 billion in emergency funding to all English councils in two tranches to help cover coronavirus costs.

However, of 173 local authorities who responded to the BBC's questions, 148 predicted a budget shortfall. Of these, at least 20 local authorities plan to hold an emergency or in-year budget.

The analysis follows similar findings from the Centre for Progressive Policies which found that at least eight in ten English councils need help to avoid going bankrupt.

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