London’s council debt problem #councilDebt

London's councils are trapped in what has been called a perfect storm, which has left the 32 boroughs, excluding the city of London, teetering on the financial brink

According to research, they're collectively facing a deficit of over half a billion pounds, as spending has spiralled and income has remained stagnant

This means more councils are at risk of going bankrupt, following the likes of Croydon, which issued its third Section 114 notice earlier this year, a local authority's way of declaring bankruptcy

Croydon was allowed to hike its council tax bills by 15% to help fill its black hole, while a range of public services face cuts

Other London boroughs could follow suit, chopping services and hiking taxes, as they try and balance the budget

But London councils are not alone. Almost one in five council bosses in England think they'll have to issue a Section 114 notice this year to keep services running

according to research by the local government association