Ministers must inject £4bn into council budgets to avert an “out of control” financial crisis, a cross-party group of MPs has warned.
The levelling up, housing and communities committee said the current local government funding system was broken and that the next UK government must conduct an urgent review of what councils do and how local services are paid for.
The committee pointed to growing evidence of “financial distress”. Of the eight councils that have declared themselves effectively bankrupt since 2018, four have been in the last 12 months.
