Michael Gove to announce extra support for social care and housing as one in five English councils foresees going bust

Ministers will announce a 6.5% increase in the funding for local councils in England in a desperate attempt to stop them going bankrupt.

Michael Gove, the communities secretary, will announce the £64bn support package on Monday, less than a fortnight after he was warned that an unprecedented number of councils are likely to declare themselves bankrupt.

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