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Covid leaves UK councils with £3bn financial black hole

BBC News Published image copyrightAlamy UK councils face a £3bn black hole in their budgets as they emerge from the pandemic, a BBC investigation into their finances can reveal. Some local authorities were struggling to carry out statutory duties and were at risk of bankruptcy, a local government expert said. And 10 councils have asked to borrow £300m of emergency money from the government to plug financial holes. The government says it has handed councils £12bn during the pandemic. A spokesman for the Ministry of Housing, Communities and Local Government (MHCLG) said: In the coming months, we will take stock of the demands faced by councils and the resources available to meet them and will decide on the timetable for future funding reform.

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