Councils warn of drastic cuts amid fears over authorities going bust

Councils have warned that neighbourhood services will have to be cut despite a Government bailout, with fears that more authorities will go bust over the coming years.

If further funding is not made available in the Budget on March 6, communities will face the consequences of a worsening financial crisis across local government, the Local Government Association (LGA) said.

An LGA survey of council chief executives found 85% of local authorities continue to plan reductions in spending on key services after the Government made an extra £600 million available for 2024/25.

The LGA said