Bradford Council calls for more cash to avoid bankruptcy

Bradford Council said it was facing a deficit of £73m

Bradford Council has stopped short of declaring bankruptcy, but has voted to request an urgent government bailout.

An emergency meeting heard the city faces a £73m overspend this year, with that figure set to rise to £103m for the next financial year.

Council leader Susan Hinchcliffe told the meeting 87% of this year's total budget was spent on essential children's and adult services.

The government said it was making up to £557m available to Bradford next year.

"Over the last 13 years we've had a real terms 60% cut in our funding because the government support grant has been gradually been taken away year by year," Ms Hinchcliffe said.

"Over the same time inflation has increased by 48%.

"You cannot make those things work together."

The authority has now put together an emergency plan, called the Bradford Budget Emergency Response Initiative, and is seeking government approval to sell off more of its surplus assets, like buildings, and to borrow more.

Just 12 councils across the country have been given permission by ministers to take this route, and some have still gone on to issue Section 114 notices, the official term for effective bankruptcy of a local authority.

Susan Hinchcliffe said the council had seen "a real terms 60% cut in our funding" over the past 13 years

Bradford Council was stripped of control of its children's services by the government in January 2022, just weeks after two women were jailed for the murder of Keighley toddler Star Hobson.

A report into the 16-month-old's death described Bradford's children's services as having been "in turmoil" and said concerns raised by family members had not been investigated thoroughly.

Earlier this month, the Local Government Association warned councils face a "growing financial crisis" with one in five authorities facing running out of money either this year or next.

A Department for Levelling Up, Housing and Communities spokesperson said: "We have just announced a funding package worth over £64bn to support councils in England to deliver services - a £4bn increase for the year ahead.

"This makes up to £556.5m available for Bradford Council in 2024-25 - an increase in Core Spending Power of up to 6.1% on 2023-24."

"Councils are ultimately responsible for their own finances and we have been engaging with Bradford Council and the Bradford Children and Families Trust around the financial challenges they face," the spokesperson continued.

"Ministers commissioned an external assurance review of Bradford Council and will be considering next steps shortly," they added.