Labour leader Jeremy Corbyn has labelled Northamptonshire County Council "effectively bankrupt" in a speech today.
It comes after the county council was yesterday issued a section 114 notice, effectively banning it from spending any more money except for safeguarding and essential spending.
The notice was issued after a Government inspector, appointed by communities secretary Sajid Javid, to find out whether the authority was failing the taxpayer.
Today, opposition parties have weighed in on the notice, which is believed the first-such order in 20 years.
Speaking at a conference in Nottingham, Labour leader Jeremy Corbyn said: "Yesterday we found out that Tory-run Northamptonshire County Council is effectively bankrupt.
"Austerity is unleashing chaos across our country, squeezing our local authorities and putting jobs and services at risk. When local councils face cuts, local people pay the price."
Northamptonshire's Labour MP candidates have also written an open letter to Sajid Javid calling on the Government to step in and run services because of "catastrophic failings" by the leadership at One Angel Street.
The letter, signed by Beth Miller, Gareth Eales and Sally Keeble, reads: "We are writing to express our deepest concern about the impact on people in Northamptonshire of the continuing incompetence in the financial management and political leadership of the county council.
"We believe that the Government must act to protect the best interests of the many hundreds of thousands of people who rely on the county council’s services."