LGA Survey: Almost 1 in 5 Councils in England at Risk of Effective Bankruptcy

The CCN said the increases in the national minimum wage and the national living wage have added new pressure on already-struggling councils.

In this photo illustration, £1 coins are seen with a £10 note in Bath, England, on Oct. 13, 2017. Matt Cardy/Getty Images

Almost one in five local government leaders believes their council is likely to effectively go bankrupt this year or next year, the Local Government Association (LGA) said on Wednesday.

Another body representing councils in England, the County Councils Network (CCN), said seven in ten local authorities are not confident they can balance the book in the coming year.