Mergers of English councils could lead to tax rises due to high debt levels

Thurrock in Essex has significant financial problems. Labour has said there will be no debt write-offs as indebted councils merge with more viable ones. Photograph: Sean Smith/The Guardian

People in areas neighbouring bankrupt councils in England could see their council tax bills rise and services cut under Labour’s plans for the most radical shake-up of local government this century.

Under plans championed by Angela Rayner, the deputy prime minister, for a “devolution revolution”, the government is pushing to merge dozens of small district and county councils in order to streamline services.