Inflation could push English councils into bankruptcy, say leaders

Rise of 2.4bn in costs could be disastrous' and essential services may need to be cut, says LGA chair

Council leaders in England have said a multibillion-pound financial crisis caused by rising inflation could make local services unviable and even lead to local authorities going bankrupt, unless the government offers emergency funding.

The cross-party Local Government Association (LGA) said local services that were seemingly secure just three months ago were now at risk of closure or cuts as councils scramble to manage an unforeseen 2.4bn rise in energy and pay costs.