THIRTY ENGLISH COUNCILS GRANTED FINANCIAL SUPPORT PACKAGES-Ministers gave the green light to collectively borrow £1.5bn.

30 English councils have been granted effective “bailouts” enabling them to borrow money to avoid bankruptcy, as ministers advised them against selling off prized local assets such as historic buildings, parks and allotments.

The councils, experiencing “unmanageable” financial pressures, have been given the green light by ministers to collectively borrow £1.5bn to plug significant budget gaps caused by underfunding and soaring demand for social care and other services.

Birmingham, Bradford, Windsor and Maidenhead – will each be allowed to borrow more than £100m this year to stay afloat, while also being allowed to issue cap-busting council tax bill increases of up to 10%.

The exceptional financial support (EFS) packages enable councils to take out capital loans to fund revenue spending, on the basis they will pay down the debt in future by disposing of assets and cutting back on frontline services.

Councils granted special borrowing packages for the first time include Newham, Shropshire, Swindon, Trafford, West Berkshire, Wirral, Enfield, Halton, Barnet, Solihull, Worcestershire and Worthing.

the minister for local government, Jim McMahon, who said that he was working with the local leaders, also encouraged councils who need help to come in confidence to offer a relationship of partnership and  not punishment