Detroit has become the largest city in the US ever to file for bankruptcy. The decision to file for bankruptcy came after the city racked up huge debts after a 60-year decline, according to Michigan governor Richard Snyder. The city's murder rate is now at a 40-year high, unemployment has tripled since 2000, many street lights and ambulances are inoperative and citizens wait an average of 58 minutes for the police to respond to calls. . So, what can local authorities elsewhere learn from Detroit?
Hannah Fearn, contributing editor on the Local Leaders Network, argues that the economic and social decline of Detroit shows what happens when localism goes wrong. "It's a shocking reminder of the real reason that Whitehall struggles to let go of the puppet strings as it attempts to implement localism. This is what happens if (when) local leaders just aren't up to the job. When localism goes wrong, it's central government that suffers the consequences," she said.
Fearn argues that a truly localised democracy requires a lot of investment and support from Whitehall, with ministers preparing councils for the greater responsibility that comes with the new powers they are given.
However, Paul Dossett, head of local government at Grant Thornton, argues that even though times are tough, powers are in place to prevent a Detroit style bankruptcy from happening to a UK council.