From the TUC

Cuts Watch #293: Could some Councils crash?

25 Oct 2010, by in Cuts Watch

Iain Hasdell, UK Head of Local and Regional Government at accountants KPMG has warned that the local government settlement announced in the spending review “will severely test the financial viability of some councils.” Warning of the need for local authorities to “be ruthless” in deciding their priorities and “hugely increase” their productivity, he has a bleak conclusion:

I am expecting this challenge to be beyond some councils, which will run out of cash at some point in the next four years, in much the same way as parts of the public sector health economy did in the middle of the last decade. Central government is likely to have to effect financial rescues of a small number of local councils later in this Parliament.