Martin Ford 14 November 2022

Counties in bankruptcy warning

Counties in bankruptcy warning image
Image: Jevanto Productions / Shutterstock.com

Hampshire and Kent CC leaders have said they will be forced to issue Section 114 notices within two years without immediate financial assistance from the Government.

In a letter to Prime Minister Rishi Sunak, Hampshire’s Rob Humby and Roger Gough of Kent laid out the challenges facing upper tier authorities.

With no fair funding review or two-year settlement, council tax and business rates are insufficient to keep pace with growing demand in adult’s and children’s social care, it warns.

Despite being ‘well run’ authorities, the letter states they are both ‘likely to be considering Section 114 notices within the next year or so’ unless this changes.

Cllr Gough said: ‘Without a major change either in the way these two services are funded, or in our legal obligations, I suspect that large parts of upper tier local government will face collapse.’

‘This is not a medium-term problem that can be fixed with more one-off handouts to keep the sector limping along, it needs fundamental changes to the whole system of local government funding.’

The leaders have asked for ‘meaningful dialogue’ with ministers, MPs and Government officials before the end of the year.

Cllr Humby added: ‘We have gone as far as we can to close the budget gaps we have faced to date, and there is nowhere left to go in future without severely impacting some of the most vulnerable people in our society.

‘We cannot sit by and let two great counties sleepwalk into a financial disaster. Even with drastic cuts to services, we won’t be able to close our future budget gaps and based on current forecasts, our authorities would have no option but to consider formal talks with our auditors, DLUHC and Treasury over the coming months.’

SIGN UP
For your free daily news bulletin
Highways jobs

Public Health Lead

London Borough of Richmond upon Thames and London Borough of Wandsworth
£51,540 - £62,451
Public Health Lead
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Director of Technology & Customer Experience

Oxfordshire County Council
£125,350 - £135,928
We do not settle for the status quo. Oxfordshire
Recuriter: Oxfordshire County Council

FM Electrical Engineer (Trainee)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,840 - £49,361 dependents on experience
Are you looking for a varied electrical role where your work has a direct impact on the safety and experience of thousands of building users. In this role, you will play a vital part in maintaining and improving a diverse corporate building portfolio of Wandsworth High Street
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Research and Evaluation Officer

Essex County Council
£43431.0000 - £51095.0000 per annum
Senior Research and Evaluation OfficerFixed Term, Full Time£43,431 to £51,095 per annumLocation
Recuriter: Essex County Council

Private Housing Standards Team Leader (copy)

North Yorkshire Council
£47,181 - £51,356
Are you someone who has a passion for helping others? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner