UK government eases rules for struggling councils to sell assets and borrow funds

The UK government will relax budgeting rules for 29 English councils, allowing them to use asset sales and Treasury loans to cover daily expenses. This is an increase from 19 councils that sought similar flexibility earlier this year. Councils will have a total budget of £69.4 billion for the next year, assuming a maximum council tax increase. However, local leaders say this amount is insufficient to meet rising costs for essential services. The government is also removing a 1% surcharge on Treasury loans, which was previously intended to encourage asset sales. Future changes may link funding more closely to local deprivation levels, potentially leading to disputes over fairness in funding.