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Cash crisis sparks 'insolvency' warning for Wolves council

Emergency action is needed to prevent Wolverhampton City Council becoming officially broke within two years, finance chiefs have revealed.

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All spending stopped at cash-strapped council

All spending which is not "absolutely essential" will be stopped at Wolverhampton City Council as finance chiefs struggle to cope with a growing cash flow crisis.

Councillors at tomorrow's cabinet meeting will be asked to approve a range of emergency measures as leaders warn the authority faces insolvency within two years if they cannot turn the situation around.

Other measures include:

  • Implement 165 savings proposals currently being consulted on sooner than expected
  • Find another £5million of savings on top of that already identified in 2014/15
  • "Faster and deeper" cuts than those previously proposed
  • Reducing the council's redundancy policy to the legal minimum

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