Councils in England in crisis as Birmingham ‘declares itself bankrupt’

With Birmingham indicating it cannot balance its books, experts warn of others living ‘hand to mouth’

The crisis in local authorities was laid bare on Tuesday as Birmingham city council in effect declared itself bankrupt, with experts warning that others across the UK were now living “hand to mouth”.

The council’s head of finance took the dramatic decision on Tuesday to issue a section 114 notice, indicating that it did not have the resources to balance its books.

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