A 'bankrupt' Tory council will be TAKEN OVER by Commissioners in a drastic, rare step after completely running out of money.

Northamptonshire County Council will be stripped of the power to run its own affairs after a damning inspection into the financial crisis at the town hall.

It will be run by Commissioners following a decision today by the Ministry of Housing, Communities and Local Government.

Labour said they were vindicated as Local Government Secretary Sajid Javid announced the move in the House of Commons.

Shadow Local Government Secretary Andrew Gwynne blamed "eight years of intransigence and austerity" as "the council bragged about its pioneering approach to services, basically running them like a business."

"The private sector cannot deliver adequate services when there is too little funding," he said.

(Image: Daily Mirror)

Turning to Mr Javid, he added: "He was cutting the ribbon on the £53million new headquarters as the authority was preparing the paperwork to declare itself bankrupt."

In February the council became the first in 20 years to ban all new expenditure after running out of cash.

The controversial 2018/19 budget then resolved to shut libraries, end bus subsidies and freeze staff pay to save cash.

Mr Javid, speaking in the Commons, agreed with an independent report that found Northamptonshire County Council "failed to comply with its duty" to deliver services.

(Image: Jack Taylor)

The report by investigator Max Caller said: "The problems faced by NCC are now so deep and ingrained that it is not possible to promote a recovery plan that could bring the council back to stability and safety in a reasonable timescale."

It added: "A way forward with a clean sheet, leaving all the history behind, is required."

Mr Javid, who quoted the report in a Commons statement, told MPs: "I am therefore minded to appoint commissioners to oversee the authority.

"From day one I propose that they take direct control over the council's financial management and overall governance.

"Getting these basics right must be the first step in stabilising the authority."

Labour's Mr Gwynne added: "This is what happens when a Government has created a £5.8 billion gap in local government funding.

"When everyone is saying that social care is on its knees and when children's services need an additional £2 billion.

"Local government cannot be allowed to collapse on this Government's watch."