Home Business News Bankrupt councils warned that they will not be bailed out by Labour

Bankrupt councils warned that they will not be bailed out by Labour

by Thea Coates Finance Reporter
11th Mar 24 7:42 am

The Shadow Chancellor Rachel Reeves has sent a firm warning shot to bankrupt councils, Labour will not bail them out.

Birmingham City Council have effectively declared themselves bankrupt as they received an equal claims bill for £760 million.

The council then approved plans to raise council tac by a whopping 21% over the next two years and they have announced £300 million in cuts.

Reeves told Sky News’ Sunday Morning With Trevor Phillips, “I’m not going to be able to fix all the problems straightaway.”

Phillips asked Reeves if she will bail out bankrupt councils and allow them to raise taxes?

Reeves said, “I’m under no illusions about the scale of the challenge that I will inherit if I become chancellor later this year and I need to be honest with people.”

The Shadow Chancellor added, “My focus is on reforming the planning system to get Britain building again.

“If we do those things, we will bring in the tax revenue and we will be able to invest in public services again. There’s no shortcuts. That is the way.”

She then told Phillips that for the Conservative Party to scrap the non-domicile tax status is absolute “humiliation for this government.”

Reeves added, “The last budget of this parliament – they’ve had 14 years and they use this moment to close a non-dom tax loophole that everyone has been aware of for years.”

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