#local-government-finance

#local-government-finance

The government has said it will spend 5bn to pay off 90% of the debts English councils have built up through supporting children and young people with special educational needs and disabilities (SEND) to the end of the financial year. The LGA, which represents councils in England, welcomed the plans, saying it "removes the immediate threat of insolvency for many councils". The government is expected to lay out their full plans for SEND reform in the Schools White Paper in the coming weeks.

"If we don't get what we need [in terms of extra government help] then a Section 114 Notice will come in, which is effective bankruptcy. We'd then get administrators come in, in effect - they'd then make a plan for where the money gets spent in Worcestershire. It would be a catastrophe. We're going to have to halt projects that were put into the budget by the previous administration, things that maybe were 'nice to have', but we can't afford them."

One of the greenest local councils in the country says it is cutting back on its net-zero schemes this year due to funding pressure. Islington Council has won praise for its ambitious targets to reduce carbon emissions in the borough. Last year, the borough was ranked the best single-tier local authority in the UK for its actions on climate change, which include decarbonising its waste recycling centre, rolling out electric vehicles and carrying out a social housing retrofit programme.

Santa Clara County's hospital lifeline sales tax increase won't affect Silicon Valley residents equally. The temporary five-eighths-cent increase, approved by voters last month as Measure A, will bring the sales tax rate to 10% or higher in three cities where voters have already approved existing local tax measures: Milpitas, Campbell and San Jose. Los Gatos residents will see their sales tax rate go from 9.25% to 9.875%. The county's remaining 11 cities will go from 9.125% to 9.75%.

Croydon Council is owed more than 1.13 million in unpaid parking fines, with some drivers racking up hundreds of penalty charge notices (PCNs) without paying a penny. According to figures seen by the Local Democracy Reporting Service (LDRS), there are 6,701 outstanding PCNs across the borough, totalling 1,134,197 in unpaid fines. The list of the top 50 worst offenders shows that several vehicles have each been issued more than 300 PCNs, with individual debts running into tens of thousands of pounds.

Birmingham city council was likely never bankrupt and the decision to issue the section 114 notice two years ago was based on unaudited and materially incorrect information, accounting experts have claimed. The Labour-run council issued a section 114 notice in September 2023, in effect declaring itself bankrupt, which triggered a wave of spending cuts and plans to sell 750m worth of assets. This prompted the government to appoint commissioners to run the council for five years.

Back in April, Newham Council got special permission to raise its council tax by 8.99 percent - nearly double the normal increase cap of 4.99 percent - in order to help it swerve bankruptcy. As Newham faces more 'difficult decisions' and a £53 million funding gap next year, a new report suggests that it could ask for permission to increase its council tax by the same amount again.

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