Commenting on the news that Labour ministers in the Senedd are preparing for the possibility of one or more of Wales’ 22 local authorities declaring bankruptcy, Peter Fox MS, Welsh Conservative Shadow Minister for Finance and Local Government said:
“This should be an impossible prospect for councils, but after 25 years of Labour’s outdated funding formula, there is a real possibility of Welsh councils declaring bankruptcy.
“At least two Welsh councils are sounding alarm bells, they must be listened to, with bold action taken where necessary.
“It’s time for a fundamental rethink of how the Welsh Labour Government fund our councils, the current method is not fit for purpose and must be replaced with a new system that is fair for all councils so that essential public services can be maintained across all of Wales.”
