Skip to main content
The Morning Star Shop
No return to austerity — cancel local authority debt
Local councils — some of which now need four times the normal funding — must have their debts waived by central government, argues MARTIN WICKS

A campaign initiated by the Labour Campaign for Council Housing calls for the government to cancel local-authority debt held by the Public Works Loans Board as an emergency measure to stave off the collapse of council services.

So far nine council leaders and five MPs have signed the statement. Cancellation would give councils £4.5 billion a year extra spending power.

The chief executive of the Chartered Institute of Public Finance & Accountancy warned of councils facing “a financial tsunami of reduced income and increased costs.” He was right. The financial crisis of local authorities is spiralling out of control as councils struggle to respond to the pandemic.

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
Similar stories
Jeremy Corbyn (second left) and Zarah Sultana, MP for Coventry South (second right) on the picket line outside London Euston train station, August 18, 2022
Features / 17 September 2025
17 September 2025

LOTTE COLLETT welcomes the arrival of a new party for the left, a vehicle for councils to finally fight for progressive policies on housing, green spaces and public facilities, rather than administering cuts and misery from central government 

A view from Blackpool Tower of terraced houses in Blackpool,
Features / 27 February 2025
27 February 2025
Above-inflation rent increases will push council tenants deeper into poverty while failing to address the housing crisis — and it won’t really raise any money, as council rent arrears are doubling across the country, argues MARTIN WICKS