Dan Peters 04 September 2023

EXCLUSIVE: Housing pressures may push councils into effective bankruptcy

EXCLUSIVE: Housing pressures may push councils into effective bankruptcy image
Image: Christophe Cappelli / Shutterstock.com

Rising housing pressures will force some councils to effectively declare bankruptcy, a local authority chief executive with more than 40 years of experience in the sector has warned.

The warning comes after the national cost of temporary accommodation reached more than £1bn a year - up 71% over the past five years – with Hastings BC naming it as the ‘main risk to the council being able to balance its budget’.

Writing for The MJ, Chelmsford City Council chief executive officer, Nick Eveleigh, who leads on housing for Essex districts, wrote: ‘Many authorities across the country with hitherto strong financial management may face bankruptcy over the coming years.’

In an interview, Mr Eveleigh said: ‘Chelmsford was hit first out of the Essex districts but it’s beginning to get serious for all of us.

To continue reading this article visit The MJ (£).

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