Warning of council tax increases following autumn statement

Shaun Davies said he was "bitterly disappointed" at the autumn statement

Council taxes could rise across the country as a result of the autumn statement, the leader of Telford and Wrekin Council has warned.

Shaun Davies, who is also the chair of the Local Government Association, said he had hoped the chancellor would have offered more money to councils.

He said it had been a "huge missed opportunity."

The Local Government Association (LGA) has predicted one in 10 councils are close to being effectively bankrupt.

In his autumn statement Mr Hunt announced a cut in National Insurance, an increase in Universal Credit and other benefits and support for business.

But Mr Davies, who has been chosen to stand for Labour in the Telford constituency at the next general election, said there was "a lack of investment for local government".

He argued: "For our national economy to grow, we need our local areas to grow, and councils are also key to this."

Council tax rises have been held to the minimum in Telford for the past two years, but Mr Davies said rising costs would force the hand of many local authorities.

He added: "More and more of our residents need our services, but without adequate government funding, the reality is that many will end up paying more council tax and getting less."

The possibility of further council tax rises would add to a record tax burden on working people in the UK.