As quoted by the Guardian and a local news website, Woking borough council is on the verge of bankruptcy (due to failed investments and financial mismanagement.) To put in context how much debt the council has, several West African countries have smaller external debts than this small district council (Togo - $1.17 Billion, Guinea - $1.33 Billion, Woking Borough Council - $2.2 Billion (Estimated, March 2023))
It has been suggested that the borough council may have to give a section 114 notice to the (central) government, which in layman’s terms means that central government can intervene to make sure the council still delivers the services it provides, but what does this actually mean?
Would central government intervention in a local council mean paying for services, changing leadership, requesting an inquiry of some sort, or even giving some sort of emergency grant to the council in order to provide their services?
How would national government, in the UK, intervene when a local government borough declare bankruptcy?