The leader of Rossendale Borough Council says she 'hopes' they do not follow Birmingham into effectively declaring bankruptcy
The leader of Rossendale Borough Council does not think the borough will reach a crisis like Birmingham, which recently issued a special notice after, in effect, going bankrupt. The authority, like others across the country, is facing challenging circumstances with factors including rising costs, changing government funding and shrinking reserves.
And a report for the Overview and Scrutiny Committee warns that Rossendale Council is currently estimated to run out of reserve funds during 2026-27, unless things change. At Rossendale Council’s latest full meeting, Conservative councillors asked about the borough’s finances during questions. “Then came Covid-19. Then came the cost of living issues. That has been our backdrop. Then there have been challenges with adult and care services, which effect higher-tier councils. Now, a lot of councils are talking about Section 114 notices, not just those which went down commercial routes. They include some very sensible councils. A £3billion shortfall is predicted for councils.
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