Mismanagement behind Middlesbrough Council troubles, says Sunak

Rishi Sunak accused Middlesbrough Council of “mismanaging” its finances as he faced questions about the pressures facing cash-trapped local authorities.

It is the latest council facing a major funding shortfall. This week the Government said it is “minded” to send in commissioners to oversee Nottingham City Council, which declared itself effectively bankrupt.

Birmingham City Council issued a section 114 notice on September 5, meaning it is essentially bankrupt.

The spate of crises facing local authorities has prompted concern about the provision of public services for local communities.

Metro mayors from West Yorkshire, Greater Manchester, Liverpool and elsewhere have called on Local Government Secretary Michael Gove to provide extra finances for struggling councils.

The Prime Minister, visiting Teesside on Friday, put the blame for Middlesbrough’s troubles squarely on Labour councillors.

“These are the facts. We have put record funding in to local areas over the past year. I did that shortly after becoming prime minister. On average, councils are having about 10% more money to spend this year than they had the year before,” he said.

“Middlesbrough Council has even more than that, more than the national average. And unfortunately this is just another example of a Labour-run council that is doing a bad job for its residents, mismanaging its finances.”