More English councils face bankruptcy, leaders warn, as deficits reach £4bn

Every second English municipality is expecting its own bankruptcy. Three British cities are already bankrupt – many could follow. According to a survey, many local authorities consider their finances to be disastrous. The consequences for citizens: tax increases and cut services.

Pircute from Elliott Brown via Flickr

Many cities and municipalities are now responding to the worsening financial situation by increasing taxes and fees. 90 percent want to increase local taxes as well as fees and charges for services such as parking or the disposal of environmental waste. Two thirds say they will cut back on their services.

“If the state goes bankrupt, of course it’s not the state that goes bankrupt, but its citizens” Carl Fürstenberg

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