The Times view on local government finances: Council Chaos

Local councils cannot go bankrupt. Some councils do engage in financial mismanagement so severe that their forecast income for the financial year falls short of spending, however. Birmingham city council is a prominent case. A new independent report by accountants and researchers reveals a pattern of problems and errors that forced ­Birmingham to issue such a warning, known as a section 114 notice, in September 2023.

Culpability rests with local decision-makers. The same is true, with a different mix of problems in each case, with other authorities that have taken this course in recent years. It would be wrong for Westminster to bail out local councils and thereby insulate them from the consequences of their own errors and place the burden on taxpayers instead. Yet