Ministers could allow council tax to rise by up to 25% to prevent bankruptcies

Experts say it is inevitable government will let English local authorities exceed 5% cap if they are likely to go bust

Ministers are under pressure to allow cash-strapped English local authorities to increase council tax by as much as 25% to prevent them becoming bankrupt.

Experts said it was inevitable that the government would give the green light to some of the most financially constrained local authorities exceeding a 5% cap to prevent them from issuing section 114 notices that indicate they are rapidly going bust.