Bristol City Council are at high risk of declaring bankruptcy as growing financial pressures put the council in a very unstable position.
Several local councils, including Nottingham and Birmingham City, have already issued a Section 114 notice declaring effective bankruptcy.
A new survey, published on Wednesday states one in five council leaders across the UK dread they will have to follow.
Political Economy expert and UWE economics professor Jo Michell said bankruptcy for Bristol City Council is “quite likely”, arguing “We’re seeing the lagged effects of austerity that started in 2010”.
This comes after the Autumn Statement, which included cuts to local grants, put essential services at risk.
1 in 5 Council leaders/CXs fear their councils facing s114 notices.
— Tom Renhard (@TomRenhard) December 7, 2023
There are fundamental issues facing #localgov finances and we need a settlement that fixes the hole in funding, addresses pressures and is long term, allowing us to plan effectively for the future ⬇️ https://t.co/UnHXR8rHd6
Shaun Davies, chairman of the Local Government Association (LGA) explains, “If social care services that councils provide cannot cope with demand, then the pressure on the NHS will grow further”.
The financial peril continues for Bristol City Council as the £32 million budget black hole is expected to rise significantly in years to come.
Labour Councillor Tom Renhard said on X, “We need a settlement that fixes the hole in funding, addresses pressure and is long-term, allowing us to plan effectively for the future”.
The council have already announced several funding cuts to facilities in Bristol, with cultural venues Watershed and Bristol Old Vic amongst those not recommended for funding in 2024.
Despite funding cuts, councillors are set to receive a 6% pay increase from the new council model, with all members receiving around £1k extra to their annual allowance.
