What does it mean when a council declares bankruptcy?

Last week, for the third time in two years, Croydon council declared bankruptcy.

Thurrock in Essex is in the news after admitting that ill-thought through investments have brought it to the brink of bankruptcy.

Local governments in the UK don’t “go bankrupt” in the way that a person or a company might (or their counterparts in the US, where municipal bankruptcies are common).

One-off sale of a building or land won’t address the rising costs that caused the difficulty in the first place, so in time the council can get into financial trouble again.

Some councils have gone to enormous, and risky, lengths to try to build up their finances by investing in shopping centres, renewable energy and high street shops.