Fears grow for UK councils after second city declares insolvency

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Fears grow for UK councils after second city declares insolvency
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LONDON — Local government bodies on Tuesday (Sept 5) warned that more councils across the United Kingdom could declare themselves in financial dire straits, after the country's second biggest city said it could not balance its books.

Local government bodies on Tuesday warned that more councils across the United Kingdom could declare themselves in financial dire straits, after the country's second biggest city said it could not balance its books.

They blamed"long-standing issues", including the roll-out of a new computer system, for an £87 million hole in its £3.2 billion-a-year budget. In June, the local authority revealed that it has to pay up to £760 million to settle historic equal pay claims but does not have the resources to do so. Thurrock Council in Essex, east of London, also declared itself in financial distress in December last year while Woking Borough Council, southwest of the capital, did the same in June.

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