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

<p>Public accounts committee calls on government to urgently address deficit on high needs spending hitting at end of financial year</p><p>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.</p><p>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.</p> <a href="https://www.theguardian.com/society/2025/jun/18/over-half-of-english-councils-face-insolvency-under-5bn-deficit-mps-warn">Continue reading...</a>