Many more councils in England are at risk of bankruptcy as they struggle to cope with a collective £4bn deficit.
In a letter to the chancellor, the Local Government Association said that even well-run councils were at risk of running out of cash over the next 18 months.
It said an “inflationary storm” had widened English councils’ estimated budget gap by an extra £1bn since July alone.
The LGA said asset sales and cuts would not help the situation, as all the “easy wins” and “low hanging fruit” had “long since gone”. It has called for central government to plug the gap.
