Sunak denies ‘crisis’ in local government funding despite bankruptcy warnings

Prime minister tells MPs the priority is to get inflation down even though English councils need another £4bn to maintain services

Rishi Sunak has denied there is a “crisis” in local government funding despite warnings that well-run councils are on the brink of bankruptcy and local services at risk without more support.

The prime minister admitted that councils faced “challenges”, in particular with inflation, which has significantly outpaced recent cash injections, at the cross-party liaison committee.