Local authorities are facing an ‘extraordinary funding emergency’ according to Cheshire West and Chester’s leader, with one in four councils revealing they will need a government bailout to stave off bankruptcy.

Cheshire West chief Cllr Louise Gittins was speaking in her role as chair of the Local Government Association (LGA), the national membership body for local authorities.

The LGA carried out a survey which revealed one in four councils are likely to require an emergency government bailout in the next two years.

The findings of the survey of council chief executives comes as more than 1,500 councillors, council leaders, senior officers, politicians and organisations gather for the start of the LGA’s annual conference in Harrogate.

The LGA is calling on Chancellor Rachel Reeves to take ‘immediate action’ in the upcoming autumn budget to ‘stabilise council finances’ and avoid what it called ‘another hammer blow’ being delivered to local services.

It said an 'unprecedented' 18 councils were given Exceptional Financial Support (EFS) from the Government in February to help meet their legal duty to balance their books this year.

Cllr Gittins said: “Councils are the backbone of communities. Every day they strive to protect vulnerable children and families, support our older or disabled loved ones to live independent lives, keep our streets clean and pothole-free and build affordable homes but this is becoming increasingly difficult.

“The unprecedented emergency support given to councils this year reveals the extraordinary funding emergency facing local government. As our survey shows, many more councils are being pushed into a precarious financial position."

Alongside funding to sustain the vital services, the LGA said it wants to work with the Government to ensure councils receive multi-year finance settlements, it also wants a cross-party review set up to look at how the local government funding system could be reformed.

Cllr Gittins added: “This is not just about numbers on a spreadsheet. Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.

“The autumn budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”