Four in 10 councils in England are at risk of going bust over the next five years, according to Grant Thornton.
The firm said challenges for councils are escalating fast as they face a £9bn budget blackhole.
Since 2021, six councils have issued section 114 notices, meaning they have declared themselves effectively bankrupt, with Birmingham City Council and Nottingham City Council the most recent to file notices.
Last year, one in six councils in England were on the brink of financial failure, defined as having cash reserves at 5% or less than their total revenue expenditure. This year, it is one in five, Grant Thornton said, climbing to 25% in 2025 and 40% over the next five years.
