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As councils grapple with rising demands for social care amidst dwindling resources, they have been forced to adjust their budgets severely. This dynamic has led to numerous councils issuing Section 114 notices, as exemplified by Birmingham’s recent struggles. The city had to implement a drastic £300 million cuts plan affecting vital services. This included layoffs, library closures, reduced highway maintenance, and a controversial tax hike of 10% to avoid a referendum on raising council tax.
This crisis isn't isolated; the Local Government Association recently indicated that one in four councils echelons anticipates needing emergency government bailouts in the upcoming two financial years.