Debt-ridden Warrington BC has admitted it will be hit by a £3m bill to refinance a £110m Government loan.
It comes amid fears of further council financial failures as interest rates rise and commercial incomes fall.
Last week stricken Woking BC, which faces the prospect of needing to write off up to £1bn of debt following a series of disastrous investments, stopped all non-essential spending after issuing a section 114 notice.
Analysis by The MJ of the Chartered Institute of Public Finance and Accountancy’s resilience index showed Warrington topping the list of Mets with the highest ratio of debt interest payments to net revenue expenditure – the figure that dominates when it comes to the ability to pay off debts.
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If this article was of interest, check out our feature, 'Preventing future Section 114 notices.'
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