Council deficits will rise to an average of £33m by the next financial year, with a £5bn black hole opening up by April 2026.
A survey of 190 local authorities by the BBC’s shared data unit found that the average local authority projected deficit would be 60% higher by 2025-26 than it was two years ago.
This will result in councils being £5.2bn short of balancing the books by April 2026, even after making £2.5bn of cuts.
The Local Government Association has called on ministers to change the way councils are funded, saying that multi-year settlements would allow for more effective planning.
