ABSTRACT
This is the same way that the receivers would close down a private sector contractor, where the contractor was insolvent. Actually it is harder for the local authority contractor. The rules require the 5% return (or a break-even situation) in each and every single year of the contract. A private sector contractor can decide to carry a loss for a year or two. Provided the contractor is financially solvent, no-one will attempt to force the contractor out of business.
