Councils cannot be technical as technical, but if they fail to balance their budgets for the financial year, Section 114 can give the notice called., external
This means that they cannot lead to new spending and reduced services of residents, such as fewer bin collections or cuts to libraries.
Before 2018, only two parliaments left section 114. Twelve people were then released.
Birmingham City Council went bust in 2023, £ 760 mln. This was followed by the Awakening Assembly, Turkroc and Croydon (the third time).
A number of local authorities in the UK did not give 114 notice but accept so-called “exceptional financial support”, external to help manage their budgets.
The Middlesbro Council is one of the 19 government allowed to take money to finance the daily spending in 2024-25.
