Council services such as bin collections could be affected by budget cuts

Councils are facing a collective budget shortfall of about £530m in 2026-27, a spending watchdog has warned.

The Accounts Commission has warned that local authorities will have to “stop, reduce, or significantly redesign” services.

It reported that a small rise in funding for day-to-day spending was not enough to keep pace with rising costs and demand, particularly on social care.

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