Sunak denies ‘crisis’ in local government funding despite bankruptcy warnings

Rishi Sunak before the Commons liaison committee at the House of Commons on Tuesday 26 March. Photograph: House of Commons/UK Parliament/PA

Rishi Sunak has denied there is a “crisis” in local government funding despite warnings that well-run councils are on the brink of bankruptcy and local services at risk without more support.

The prime minister admitted that councils faced “challenges”, in particular with inflation, which has significantly outpaced recent cash injections, at the cross-party liaison committee.