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Government gives £28m emergency bailout to crisis hit council
Feb 20, 2025
The emergency funding will prevent the local authority from declaring bankruptcy for now
Crisis-hit Wirral Council has received an emergency funding package of nearly £28m as it looks to stave off the threat of bankruptcy.
The cash-strapped local authority made an urgent request for around £40m in funding to the government after facing huge financial challenges. The government has now agreed a package of £20m to support the council's budget this year, while £7.5m of support for the next financial year has been agreed in principle.
Other councils that have been granted funding include Birmingham, Worcestershire, Trafford, Thurrock, Southhampton, Nottingham, Croydon, Bradford and Cheshire East.
The announcement for Wirral will prevent the local authority from declaring bankruptcy for now as the new money will cover the roughly £20m black hole in its budget.
However £25m worth of budget cuts are still expected from April which could see libraries under threat, Birkenhead Town Hall closing and sweeping job cuts within the local authority. Councillors have said it was one of the toughest years for the council and pressure on Labour council leader Cllr Paul Stuart led to him announcing he will step down in May.
Cllr Stuart said it was "never ideal to have to ask for additional financial support" but welcomed the government's decision, adding: "The government has recognised that Wirral's financial situation, like many other councils, is not due to mismanagement but due to the previous Tory government's financial legacy.
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