Hammond ‘immoral’ to ignore council crisis

WARNING John McDonnell LABOUR said it would be “morally reprehensible” for Philip Hammond to ignore councils’ cash crisis in his Spring Statement.

John McDonnell demanded the Chancellor “as a bare minimum” plug deficits in children’s services, social care and domestic violence services. The Institute for Fiscal Studies said UK borrowing needs may be £10billion lower than predicted and the Shadow Chancellor added: “Inaction under these circumstances would not only be irresponsible but morally reprehensible.”

His warning came as Somerset, Norfolk and Lancashire councils showed signs of financial crisis similar to Northamptonshire, which effectively declared itself bankrupt last month.

The Treasury has said there will be no major tax or spending announcements on Tuesday and experts warned austerity was not over.