Every second English municipality is expecting its own bankruptcy. Three British cities are already bankrupt - many could follow.
Legally speaking, municipalities in Great Britain cannot go bankrupt like a company. But if the financial problems get out of hand, the authorities have to publish a “section 114 notice” As a result, significant portions of expenditure usually have to be cut.. 90 percent want to increase local taxes as well as fees and charges for services such as parking or the disposal of environmental waste. Two thirds say they are cutting back on their services.