Local authorities are facing a £5.2bn deficit by April 2026 even after they have made £2.5bn of planned cuts, new research has revealed.
A survey of 190 upper-tier authorities in the UK by the BBC's Shared Data Unit has found that the average council now faces a £33m predicted deficit by 2025-26.
This represents a 60% increase on the predicted £20m deficit recorded two years ago.
Chair of the Local Government Association (LGA), Cllr Shaun Davies, told the BBC that the predicted deficit was the result of inflation, the introduction of the National Living Wage, energy costs and increasing demand for services.
Cllr Tim Oliver, chairman of the County Councils Network, said: 'Despite the government increasing funding for councils over recent years, a combination of high inflation and rising demand has left county and unitary authorities facing some of their most toughest budgetary decisions to date this year.
'County authorities will do all they can this year to deliver these savings whilst protecting vital frontline services, particularly care services, but there is now little fat to cut after a decade of financial restraint and many councils are facing significant in-year overspends as a result.'
