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Paying off the resulting debts means local people will see a “significant and rapid reduction” in the level of council services while facing higher council tax bills.
This is the really worrying bit. Council services are already slashed to the bone. Imagine what they'll look like after this episode...
Those responsible will undoubtedly have avoidable deaths and tragedies on their hands.
This is now two Tory run authorities in similar boats with very similar reasons - extreme bad management, breaching of fiscal rules, and lack of accountability for their actions.
Woking Council is in even more dire straits, with £1.2bn deficit (guardian article - Jun 23).
And on top of that two Tory county councils have warned they are on the financial brink - Kent and Hampshire (guardian article - Feb 23).
It may not just be Tory councils of course, but so far it looks like a pattern - at the minimum poor governance and a lack of oversight of councils by central government for loans given to councils.