More English councils face bankruptcy, leaders warn, as deficits reach £4bn

Budgets under pressure like never before' due to inflation and rising demand for social care, with deep cuts to services likely

Many more councils in England are at risk of bankruptcy, town hall leaders have warned, as unprecedented financial pressures force local authorities to prepare drastic cuts to services to cope with a collective 4bn deficit.

The bleak message, set out in a letter to the chancellor, Jeremy Hunt, said council budgets were under pressure like never before" because of the rapid deterioration in their finances caused by inflation and soaring demand for social care.