Nearly one in 10 English councils expect to go bust in next year, survey finds

Nottingham city council is one of four local authorities to have declared themselves in effect bankrupt in the past 15 months. Photograph: Fabio De Paola/The Guardian

Nearly one in 10 councils in England have warned they will go bust in the next 12 months as authorities plan widespread cuts, above-inflation council tax rises and across-the-board increases to resident charges, a survey has revealed.

The Local Government Information Unit (LGIU) annual poll of local authority leaders and top managers reveals a near-total collapse in confidence in the financial viability of councils as they grapple with “desperate” pressures and shrinking budgets.