People in the area adjacent to the UK Bankruptcy Council see their council tax rise and cut services under the worker's plan for the most fundamental reform of local governments of this century I'm taking a risk.
Under the plan defended by Deputy Prime Minister Angela Rayner for a “commission revolution,” the government is pushing for dozens of small districts and county councils to merge to streamline services.
However, some of the councils involved have encountered serious financial distress, including Nottingham, Walking in Surrey, and Thurlock in Essex, which raises the prospects that residents of nearby authorities can pick up their works. It's there.
The government warned the affected council last week that there would be no amortization of heavy debts to smooth out the process as billions of pounds of debt are wrapped in the new merger council.
in Letters to affected authorities“Community Minister Jim McMahon said that debt levels need to be managed locally, including some of the efficiency possible through restructuring, including areas where the council declared effective bankruptcy.” Ta.
“There is no proposal that council obligations will be addressed centrally or amortized as part of a restructuring,” he said.
Official figure After some local governments spent a huge amount on commercial schemes to avoid austerity under previous conservative governments, some local governments spent a huge amount on commercial schemes; They raised £71.5 billion in net borrowings between them.
Last month, the Guardian will cancel £1 billion in debt held by the problematic Walking Borough Council to allow mergers between the county's 12 local governments. He made it clear that he had requested.
Other problematic councils set up for the merger include Thurrock, which has liabilities worth £1.5 billion after a failed investment, and Nottingham, which declared effective bankruptcy in 2023.
Sam Smith, a conservative leader of Nottinghamshire County Council, said the minister pushing to expand Nottingham City Council's borders would land county residents with worse services and higher taxes. .
“The residents of my county in the suburbs cannot plague the Labour Government and Council to make sound political decisions to correct the reasons why they are bankrupt, so that they can't be bothered by the Labour Government and the Council. You should not be forced to join the city.
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“It's financially bankrupt due to inappropriate decisions by the Labour leader.”
Barry Aspinell, a liberal Democratic leader of Brentwood Council, could merge with Thurrock. I don't think these things are being paid out anytime soon, and as a result, the residents are permanently red. ”
Will Forster, a liberal Democrat from Walking, said the council would never pay off its debt. “Whether it is shaming a reorganization or another way, the government must recognize this and amortize the affordable walking debt.”
Last week, Rayner said the government would take a “common-sense approach” to restructuring as it promotes a broader mandate package and establishes six new mayoral authorities.
The government has been asked to comment.
