Labour is not going to bail out bankrupt councils, the silhoutte chancellor has stated.
“I’m not going to be able to fix all the problems straightaway,” Rachel Reeves stated throughout an interview on Sky News’ Sunday Morning With Trevor Phillips.
Her feedback observe Birmingham Town Council effectively declaring bankruptcy next being crash with a £760m invoice to govern equivalent pay claims.
In reaction, the council approved plans to hike council tax by 21% over the after two years, in addition to £300m in cuts over the similar length.
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Requested if she would bail out the councils, permit them to boost taxes or inform them to sink or swim, Ms Reeves stated: “I’m under no illusions about the scale of the challenge that I will inherit if I become chancellor later this year and I need to be honest with people.”
She added: “My focus is on reforming the planning system to get Britain building again…
“If we do the ones issues, we will be able to carry within the tax earnings and we can put money into society products and services once more. There’s negative shortcuts. That’s the means.”
During the Sky News interview, Ms Reeves also said scrapping the non-dom tax status is “an utter embarassment for this govt”.
“The last budget of this parliament – they’ve had 14 years and they use this moment to close a non-dom tax loophole that everyone has been aware of for years,” she added.
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Alternative councils have successfully declared chapter
A number of alternative councils have successfully declared chapter, with Hackney Council issuing a category 114 understand in 2000 and Northamptonshire County Council following swimsuit in 2018.
Croydon Council issued its 3rd category 114 understand in two years in November 2022. Thurrock in Essex made the similar advance in December 2022 next it were given into difficulties over borrowing immense sums to put money into solar power.
Woking issued a category 114 in June 2023 because of what it stated used to be “an extremely serious financial shortfall owing to its historic investment strategy that has resulted in unaffordable borrowing, inadequate steps to repay that borrowing and high values of irrecoverable loans”.
