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Cov Council Going Bankrupt? (1 Viewer)

  • Thread starter Nick
  • Start date Oct 4, 2023
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Nick

Administrator
  • Oct 4, 2023
  • #1
Be interesting to see Maton and Duggins justifying it.
 

ccfctommy

Well-Known Member
  • Oct 4, 2023
  • #2
How does a council go bankrupt exactly?
 

Nick

Administrator
  • Oct 4, 2023
  • #3
https://commonslibrary.parliament.uk/what-happens-if-a-council-goes-bankrupt/
 

Evo1883

Well-Known Member
  • Oct 4, 2023
  • #4
Probably blame the bin men
 
Reactions: Sick Boy and Saddlebrains

David O'Day

Well-Known Member
  • Oct 4, 2023
  • #5
Nick said:
Be interesting to see Maton and Duggins justifying it.
Click to expand...
It's because they don't have enough money to supply essential services due to reduced central government funding and the inability to raise council tax to a level needed to cover the shortfall

Pretty easy to explain
 
Reactions: stupot07 and Deleted member 5849

Nick

Administrator
  • Oct 4, 2023
  • #6
David O'Day said:
It's because they don't have enough money to supply essential services due to reduced central government funding and the inability to raise council tax to a level needed to cover the shortfall

Pretty easy to explain
Click to expand...

Yet they were planning a bailout of a failed Rugby team who had gone bust owing the Council hundreds of thousands.
 
Reactions: stupot07, KAB, duffer and 4 others

Grendel

Well-Known Member
  • Oct 4, 2023
  • #7
David O'Day said:
It's because they don't have enough money to supply essential services due to reduced central government funding and the inability to raise council tax to a level needed to cover the shortfall

Pretty easy to explain
Click to expand...

Nothing to do with the £50 million potential equal claim payments then?
 
Reactions: thekidfromstrettoncamp, StrettoBoy, napolimp and 1 other person

JulianDarbyFTW

Well-Known Member
  • Oct 4, 2023
  • #8
I think the BBC reported part of the reason as "increasing inflation and social care costs". But surely that applies to all councils in one way, shape, or form.

I did see some stats that showed a ~10% reduction in the population of Coventry since Covid, which if true (I have doubts) suggests a decrease in council income too.
 

skybluetony176

Well-Known Member
  • Oct 4, 2023
  • #9
JulianDarbyFTW said:
I think the BBC reported part of the reason as "increasing inflation and social care costs". But surely that applies to all councils in one way, shape, or form.

I did see some stats that showed a ~10% reduction in the population of Coventry since Covid, which if true (I have doubts) suggests a decrease in council income too.
Click to expand...
There’s literally dozens of councils facing the same issue. Regardless of which political parties run that council. And in the majority of cases it’s down to cuts from central government.
 

Grendel

Well-Known Member
  • Oct 4, 2023
  • #10
skybluetony176 said:
There’s literally dozens of councils facing the same issue. Regardless of which political parties run that council. And in the majority of cases it’s down to cuts from central government.
Click to expand...

Of course nothing to do with this...


‘It’s going to cost billions’: UK councils face huge bills over equal pay claims

GMB union is supporting 3,000 claims in Birmingham – and is gathering evidence from 20 other councils
www.theguardian.com
 
Reactions: KAB, StrettoBoy and Como

jimmyhillsfanclub

Well-Known Member
  • Oct 4, 2023
  • #11
A lot of councils have also taken on huge levels of debt in order to gamble on the markets, commercial property investments etc.

.......apparently with not much thought into what happened when the cost of that debt increased significantly (as was inevitable)


Phil & Kirstie have a lot to answer for.
 
Reactions: Deleted member 5849

Sky Blue Pete

Well-Known Member
  • Oct 4, 2023
  • #12
ccfctommy said:
How does a council go bankrupt exactly?
Click to expand...
Reduce their funding by £1bn and then increase the adult social care requirement by withdrawing any safety net at a time of record cost of living rises
All councils will find themselves in this position
Can you imagine the alternative of taking hundreds of thousands pounds out of adult social care locally!
 
Reactions: Deleted member 5849 and ccfctommy

David O'Day

Well-Known Member
  • Oct 4, 2023
  • #13
Grendel said:
Nothing to do with the £50 million potential equal claim payments then?
Click to expand...
Not massively no, CCC main issues are the lack of central funding and the inability to tax the shortfall

You can believe what you want but that is the words of a senior officer.

Thanks for playing though
 
Reactions: Grendel

David O'Day

Well-Known Member
  • Oct 4, 2023
  • #14
Sky Blue Pete said:
Reduce their funding by £1bn and then increase the adult social care requirement by withdrawing any safety net at a time of record cost of living rises
All councils will find themselves in this position
Can you imagine the alternative of taking hundreds of thousands pounds out of adult social care locally!
Click to expand...
pretty much this, people need to understand that no matter how low the funding levels get the council still needs to provide a certain level of service even if they can't really afford this.
 
Reactions: Deleted member 5849

David O'Day

Well-Known Member
  • Oct 4, 2023
  • #15
If anyone else wants to go on about "equal claims" then remember this. If central government properly funded councils of all stripes there wouldn't be these issues and the equal claims costs would be easily managed.

Blaming equal claims for a council going bust is like someone saying they bankrupt because they brought a loaf of bread to eat. They only become issues because something else has gone horribly wrong before hand.
 
Reactions: Joy Division, Deleted member 9744 and Sky Blue Pete
D

Deleted member 5849

Guest
  • Oct 5, 2023
  • #16
If they were the only ones there might be a point, but given local authorities have been encouraged to make risky investments to fund services, and many are on the brink (including some that may come as a surprise if they fall) then the answer is clearly that central government have squeezed funding for years, attempted to make a small state by stealth and don't care about the crash in support for the vulnerable as a result.
 
Reactions: Sky_Blue_Dreamer, duffer, Sky Blue Pete and 1 other person

Sky Blue Pete

Well-Known Member
  • Oct 5, 2023
  • #17
Deleted member 5849 said:
If they were the only ones there might be a point, but given local authorities have been encouraged to make risky investments to fund services, and many are on the brink (including some that may come as a surprise if they fall) then the answer is clearly that central government have squeezed funding for years, attempted to make a small state by stealth and don't care about the crash in support for the vulnerable as a result.
Click to expand...
We know that to be true
 

Como

Well-Known Member
  • Oct 5, 2023
  • #18
My Gran worked a school cook for many decades for the Council, seems like she, well her Estate would be owed a bundle.
 
N

napolimp

Well-Known Member
  • Oct 5, 2023
  • #19
ccfctommy said:
How does a council go bankrupt exactly?
Click to expand...

How DOESN'T a council go bankrupt.
 
Reactions: Como

eastwoodsdustman

Well-Known Member
  • Oct 6, 2023
  • #20
Maybe they should sell off some of their art collection to offset some of their losses.
Nobody gets to see it anyhow.

Nearly all Coventry City Council-owned artwork in storage

More works owned by Coventry's council are stored compared to before the UK City of Culture year.
www.bbc.co.uk
 
Reactions: dutchman
D

Deleted member 5849

Guest
  • Oct 6, 2023
  • #21
eastwoodsdustman said:
Maybe they should sell off some of their art collection to offset some of their losses.
Nobody gets to see it anyhow.

Nearly all Coventry City Council-owned artwork in storage

More works owned by Coventry's council are stored compared to before the UK City of Culture year.
www.bbc.co.uk
Click to expand...
Cultural vandalism, that would be
 
D

Deleted member 5849

Guest
  • Oct 7, 2023
  • #22
Anyway, £30mil funding gap for CCC, £18mil fu9nding gap for WCC. They split Northants after its bankruptcy, and the North has a gap of £17mil, the West £10mil. Leicestershire is a £44mil gap.

In short, it's a shitshow, and central government don't care.
 
Reactions: Sky_Blue_Dreamer
P

Peter Billing Eyes

Well-Known Member
  • Oct 9, 2023
  • #23
JulianDarbyFTW said:
I think the BBC reported part of the reason as "increasing inflation and social care costs". But surely that applies to all councils in one way, shape, or form.

I did see some stats that showed a ~10% reduction in the population of Coventry since Covid, which if true (I have doubts) suggests a decrease in council income too.
Click to expand...
There hasn’t been a 10% reduction in the population, it was found that the way they had been calculating the figures had been skewed for a number of years and over-estimated. At one point it was suggested the numbers in Coventry were approaching 380,000, when in fact they were 345,000 people in the city. I’m not sure what effect that would have on funding, but it is wrong to suggest the population has fallen.
 

shmmeee

Well-Known Member
  • Oct 12, 2023
  • #24
napolimp said:
How DOESN'T a council go bankrupt.
Click to expand...

It’s not a person. It’s a government entity. It runs out of money when central government says it does.
 
Reactions: Deleted member 9744, fernandopartridge and Peter Billing Eyes

shmmeee

Well-Known Member
  • Oct 12, 2023
  • #25
Deleted member 5849 said:
Anyway, £30mil funding gap for CCC, £18mil fu9nding gap for WCC. They split Northants after its bankruptcy, and the North has a gap of £17mil, the West £10mil. Leicestershire is a £44mil gap.

In short, it's a shitshow, and central government don't care.
Click to expand...

Just more incompetence. Police, Justice, Health, Education, transport, immigration, tax collection. Is there an area of government that isn’t on its knees?
 
Reactions: Como

fernandopartridge

Well-Known Member
  • Oct 12, 2023
  • #26
I really hate discourse in this country. Every penny a council spends is spent into the private sector (either through purchasing labour, goods and services from people or businesses), why is it that people believe cutting that by a significant % is a sensible idea?

Sent from my Pixel 7 using Tapatalk
 
N

napolimp

Well-Known Member
  • Oct 12, 2023
  • #27
shmmeee said:
It’s not a person. It’s a government entity. It runs out of money when central government says it does.
Click to expand...

Just tongue in cheek pal.
 

Nick

Administrator
  • Oct 27, 2023
  • #28

Coventry City Council's Coombe Abbey Hotel losing millions

Coventry City Council's bleak forecast follows a warning last month that it could be close to bankruptcy.
www.bbc.co.uk

Astute business
 
Reactions: dutchman

Senior Vick from Alicante

Well-Known Member
  • Oct 28, 2023
  • #29
Cov services will be cut next financial year due to the fact that they are over spending on social services as a direct consequence of the Daniel Pelka murder and enquiry. They are overtly risk adverse due to this and spend an excessive proportion of budget in this area.
 

Flying Fokker

Well-Known Member
  • Oct 28, 2023
  • #30
Senior Vick from Alicante said:
Cov services will be cut next financial year due to the fact that they are over spending on social services as a direct consequence of the Daniel Pelka murder and enquiry. They are overtly risk adverse due to this and spend an excessive proportion of budget in this area.
Click to expand...
It’s not that straightforward. Social services, such as older peoples services and also othe day services have spare capacity but are managed in such a way as they are reluctant to take on new service users when there are external service providers. They also work on the basis that people take a direct payment rather than council services. Some strange projects in the past few years. Embraced by some, but none the less, poor use of public funds.
 
Reactions: dutchman

Como

Well-Known Member
  • Nov 2, 2023
  • #31

Coventry council used Airbnbs to house ‘vulnerable’ teenage boy accused of rape

A judge has accused the local authority of a ‘lackadaisical’ attitude to the 16-year-old’s care after regulated providers refused to give him accommodation
www.theguardian.com

Coventry council used Airbnbs to house ‘vulnerable’ teenage boy accused of rape
Judge accuses local authority of a ‘lackadaisical’ attitude to the 16-year-old’s care after regulated providers refused to give him a place

You can imagine how much this is costing and a classic example of designing a system that could not possibly handle such a situation and then blaming the people stuck with the issue.
 
Reactions: RedSalmon
O

OffenhamSkyBlue

Well-Known Member
  • Nov 3, 2023
  • #32
 

fernandopartridge

Well-Known Member
  • Nov 3, 2023
  • #33
OffenhamSkyBlue said:
Click to expand...
To be fair to the council the best element of it was delivered and that's the deck over the ring road. It was always probably a bit too ambitious.

Sent from my Pixel 7 using Tapatalk
 
W

wingy

Well-Known Member
  • Nov 3, 2023
  • #34
Maybe it will go to the private sector,or switch it to factory farming?It was different country back then what's happening to leasehold not that it's likely , stick a load people in it?
 

fernandopartridge

Well-Known Member
  • Nov 3, 2023
  • #35
wingy said:
Maybe it will go to the private sector,or switch it to factory farming?It was different country back then what's happening to leasehold not that it's likely , stick a load people in it?
Click to expand...
The private sector isn't interested, the intention was never for the council to fund it all

Sent from my Pixel 7 using Tapatalk
 
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