Wednesday 23 October 2013

Can a Welsh Council go bankrupt

This answer I believe is no but what can happen is that due to financial pressure a Council could either fail to fulfill its contractual arrangements or fail to meet its statutory responsibility.
For the above to occur a Council would have to meet the following criteria
High Debt charges
Low reserves
Expensive long term contracts on statutory provision
Pension fund in actuarial defecit

I don't know of any Welsh Council that meets those requirements

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