COUNCILLORS facing a “financial black hole” are calling on the government for more funding after a local authority declared bankruptcy.

Green councillors in Brighton and Hove, including the leader of the city council Phelim Mac Cafferty, say the latest figures show a £20 million gap in the city’s budget due to the impact of coronavirus.

It comes after Croydon Council imposed emergency spending restrictions under a Section 114 notice yesterday - a measure which is used when a local authority cannot deliver a balanced budget.

It means cash can only be spent on safeguarding the vulnerable and legal commitments, while all other spending is blocked.

Croydon is the first council to declare a Section 114 order since Northamptonshire County Council in 2018.

SEE ALSO: Coronavirus crisis has cost Brighton council £26 million

Cllr Mac Cafferty stated in a tweet yesterday: “Croydon Council today declared itself bankrupt.

“A reminder of the massive hit councils have taken due to Covid-19 after a full decade of Tory cuts. This can’t continue.

“Green Cllrs are calling for the Conservative government to fund Brighton & Hove – and all councils – properly.”

In a video released by the Greens, deputy leader Cllr Hannah Clare described the funding gap as “the biggest financial black hole the council has seen for a very long time”.

The video states that coronavirus has had a “huge impact” on budgets with a shortfall of £2 billion in English councils.

The Greens say the funding gap is due to the loss of income and increased spending pressures, such as the provision of Personal Protective Equipment and food supplies, during the crisis.

They have accused the government of not providing enough support to councils “following a decade of Tory cuts”.

Cllr Tom Druitt, joint finance lead at the city council, said: “It’s a tough time.

“We’ve got some big challenges ahead and we can’t do this by ourselves.”

In September, figures from Brighton and Hove City Council showed an estimated £23 million shortfall in parking and events which have been halted due to coronavirus.

The authority spent more than £12 million on adult social care, while a further £3.89 million was handed out as part of emergency homelessness and rough sleeping provisions.

The Ministry of Housing, Communities and Local Government pointed to a Public Interest Report published last month which was critical of the Labour-run council in Croydon.

Speaking to the BBC, a spokesman described the authority as “entirely irresponsible with their spending and investments”.