The Community Charge was extremely unpopular, leading to the poll tax riots of 1990,[1] and contributing to the resignation of Margaret Thatcher as Prime Minister later that year.

[3][4] The most common type of notice is made under section 114(3) which restricts all spending except for that which funds statutory services.

[5][6] Despite the fact that local authorities in the United Kingdom cannot go bankrupt,[7] issuing a section 114 notice is often described in the media as a council effectively declaring bankruptcy.

Most councils under a section 114 notice will then pass a new budget to introduce cuts and reduce spending.

This legislation in the United Kingdom, or its constituent jurisdictions, article is a stub.