Abject Failure in Northamptonshire

Northamptonshire County Council has been given a bailout through the mechanism of using the capital from the sale of its newly built Town Hall to fund the gap in its services until it is formally abolished.  That is quite contrary to normal practice, but I suppose that now the County is no longer going to exist, there is no point having a Town Hall.  This all follows its effective declaration of bankruptcy earlier in the year. 

I am still surprised by the way in which some people don't understand why using capital receipts to prop up your revenue spending is a bad idea.  It is because although they plug the gap next year, unless they cut their budget more the next year they will face the same problem and their capital receipt will have been used up.