English councils warn of ‘existential crisis’ caused by funding shortfall

Local Government Association says any attempt to patch up budgets by raising council tax is doomed to fail

Local authorities have warned they face an existential crisis" caused by massive funding shortfalls and any attempt by ministers to patch up budgets by allowing increased council tax is doomed to failure.

The multibillion black hole" in England's municipal finances - which has pushed a number of councils to the brink of bankruptcy - could not be fixed by local ratepayers alone, who would face unrealistic council tax increases of up to 20%, the Local Government Association (LGA) said.