Over half of English councils face insolvency under £5bn deficit, MPs warn | Local government

Councils in England face being overwhelmed by billions of pounds in debts and reforms that are divorced from reality, according to an influential committee of MPs.

In its inquiry into local government finances, the public accounts committee (PAC) told the Treasury and other departments to urgently address the estimated £5bn deficit on high needs spending – mainly on special educational needs – that will hit council balance sheets at the end of the financial year, potentially driving many insolvent.

Sir Geoffrey Clifton-Brown, the PAC’s chair, said: “Our inquiry heard that the government is concerned about local authority finances. But the lack of urgent action to come forward with a plan to address the fast-approaching cliff edge for under-pressure authorities would seem to…