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News round-up 27/8: Care homes in debt trouble

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Your daily media round up of all the key stories affecting local government


Care homes

One in three care homes is in danger of collapse because of borrowing levels, the Times £ reports. The paper says financial analysis showing one in seven businesses owe more than their assets raises fears of another Southern Cross, the business failure which left 30,000 care home residents in limbo.


Elderly housing

Ministers are to urge planning officers and developers to build more bungalows to cater for Britain’s ageing population, the Daily Mail reports.


School careers advice

Young people believe that the careers guidance they received at school was inadequate, according to new research from children’s charity Barnado’s. The Guardian reports that legislation introduced in 2011 which transferred responsibility for careers advice from councils to schools, without any new funding for schools, means more pupils may be at risk of missing out on the support that they need.



A growing number of Conservative backbenchers are publicly warning about the dangers of fracking, the Daily Telegraph reports today. The prime minister is expected to face “mounting opposition” from backbenchers in constituencies where it could take place, the report suggests.



The Institute of Directors has urged ministers to abandon the “grand folly” of the £50bn high-speed rail project with only a quarter of members believing it will provide value for money, reports the Guardian. The institute’s head, Simon Walker, said that the business case for the line linking Birmingham, Manchester and Leeds over the next 20 years “simply is not there”.



Lord Hutton of Furness, the former Labour minister who led a review of public sector pensions for the coalition, has said the benefits system supports the workshy, the Times £ reports.


Local government debt

The Financial Times devotes part of its front page to a report on Guiyang, one of the fastest growing cities in China, where the supply of water and collections of rubbish have been cancelled. The municipal government, along with others in China, ran into debt troubles after setting up a state-owned development company and taking on significant bank loans.



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