CE Bankruptcy Danger ?

An AOL reader, Paul Wise, recently suggested we read an article published in the Daily Telegraph on Friday 15/12 /2023.

The article said Cheshire East is one of several councils in danger of having to issue a section 114, meaning they are unable to balance their budgets by the end of the financial year.

The article quoted Cheshire East as saying it faced potential bankruptcy due to the "devastating impact" of the cancelling the Northern Leg of HS2.

Apparently the authority said they had spent £11 million preparing for the rail link and this would now have to be written off. Most of this – £8 million had been funded by borrowing and would now have to be found from the council's budget.

The impact of this on residents may be that the Council will have to seek permission from the government to increase Council Tax between 10- 15 %

By Courtesy of the Daily Telegraph
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The Daily Telegraph article can be found at https://www.telegraph.co.uk/politics/2023/12/14/labour-bradford-cheshire-east-bankruptcy-council-tax-rise/

There are similar articles in other news sites

Sky News – https://news.sky.com/story/cheshire-east-council-issues-bankruptcy-threat-warning-after-decision-to-scrap-hs2-13030821

Independent- https://www.independent.co.uk/news/uk/politics/hs2-sunak-cheshire-council-bankrupt-b2464236.html

Guardian – https://www.theguardian.com/society/2023/dec/14/cheshire-east-council-says-it-faces-bankruptcy-due-to-hs2-link-cancellation