Jeremy Hunt’s budget cuts spark fears of ‘existential threat’ to English councils

Jeremy Hunt’s autumn statement went down well with colleagues but has caused concern in the corridors of local government. Photograph: UK Parliament/Jessica Taylor/PA

Jeremy Hunt has been warned he will trigger a fire sale of public assets, reduce councils to an emergency service and put the vulnerable at greater risk after an autumn statement pointing to a new wave of austerity.

There will be a significant increase in the number of councils in effect “returning the town hall keys” to government because they are no longer sustainable, according to council leaders. In a furious response to the autumn statement, they said several “flagship blue counties” could go bankrupt just as next year’s election is called.