Financial failures at Woking BC could lead ministers to scrap sector borrowing freedoms unless efforts to identify councils at risk are found.
The Government is consulting on what metrics to use for identifying councils at financial risk.
Proposed measures include the proportionality of debt, the proportion of capital assets invested to return a profit and the proportion of debt borrowed from outside central or local government.
The move is part of the Government’s plans to expand its statutory powers to tackle excessive risk.
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