Furious council leaders warn chancellor that austerity measures could force ‘flagship blue counties’ to go bankrupt

Jeremy Hunt has been warned he will trigger a fire sale of public assets, reduce councils to an emergency service and put the vulnerable at greater risk after an autumn statement pointing to a new wave of austerity.

There will be a significant increase in the number of councils in effect “returning the town hall keys” to government because they are no longer sustainable, according to council leaders. In a furious response to the autumn statement, they said several “flagship blue counties” could go bankrupt just as next year’s election is called.

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