Why is local government in such trouble?
The Briefing Room
BBC
4.8 • 731 Ratings
🗓️ 18 January 2024
⏱️ 28 minutes
🧾️ Download transcript
Summary
It’s been another difficult week for local government. Birmingham City Council announced it needs to make up to 600 redundancies to help balance its books and Middlesbrough Council decided to apply to the Government for £15m of emergency funding to avoid effective bankruptcy. Also this week new figures have been released showing just how much debt some local authorities hold. And it’s a lot.
Since 2021 there have been six councils which have declared themselves effectively bankrupt. Given the responsibilities of local government that feels serious for many of us.
So what are the financial pressures facing councils and why?
David Aaronovitch is joined by the following experts: Aileen Murphie, specialist adviser to the Levelling Up, Housing and Communities select committee and former National Audit Office Director Tony Travers, visiting Professor at the LSE’s Department of Government Kate Ogden, Senior Research Economist at the Institute for Fiscal Studies.
Production team: Nick Holland, Kirsteen Knight and Charlotte McDonald Production Co-ordinators: Sophie Hill Sound: Andy Fell Editor: Richard Vadon
Transcript
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| 0:00.0 | BBC Sounds, Music, Radio, podcasts. |
| 0:09.4 | It's been another difficult week for local government. |
| 0:13.3 | Birmingham City Council announced it needs to make up to 600 redundancies |
| 0:17.3 | to help balance its books, |
| 0:19.0 | and Middlesbrough Council decided to apply to the government |
| 0:22.1 | for £15 million of emergency funding to avoid effective bankruptcy. |
| 0:28.1 | Also this week, new figures have been released showing just how much debt some local authorities |
| 0:32.8 | hold, and it's a lot. |
| 0:36.1 | From 2000 to 2018, two councils declared themselves unable to balance their books. |
| 0:42.3 | In the last five years, 11 councils have followed suit. |
| 0:46.1 | Given the responsibilities of local government, that feels serious for many of us. |
| 0:50.6 | So just how bad are things? |
| 0:53.3 | And is the problem local or systemic? |
| 0:56.3 | Step into the briefing room and together we'll find out. |
| 1:02.8 | First of all, let's start by identifying which councils have been in trouble recently |
| 1:07.2 | with Paul Lynch, who works for the BBC's shared data unit. |
| 1:11.8 | Paul Lynch, can we begin by going through what's happened at some of those councils that have |
| 1:17.6 | had to effectively declare themselves bankrupt? |
| 1:21.1 | You may have heard this term effective bankruptcy used by a bunch of news outlets to describe |
| 1:26.1 | when a council has issued what's called a section |
| 1:29.3 | 114 notice. It's not really bankruptcy. It's just become a shorthand to describe this legislation |
| 1:36.2 | that was part of the Local Government Act back in 1988. This is when a council can't meet |
... |
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