Image source, Getty Images Image caption,

Thurrock Council, in Essex, has debts reaching £1.4bn

By Pilar Tomas and Paul Lynch

BBC Shared Data Unit

The debt mountain at UK councils has reached staggering levels, posing a risk to local services, the Public Accounts Committee has said.

BBC analysis shows UK councils owe a combined £97.8bn to lenders, equivalent to £1,100 per person, as of September.

Committee chair Meg Hillier warned of an "extreme and long-lasting effect" if more councils go bust.

Council leaders say years of under-funding have forced them to invest in commercial ventures.

The comments come as town hall leaders have started to reveal stark draft budgets for the coming financial year.

Major cuts are being planned at Thurrock, Wokingand NottinghamCity Councils - all of which have effectively gone bust over the last two years, at least in part, due to failed commercial investments.

Leaders at Thurrock - which reported a financial black hole of £469m in 2022 and debts reaching £1.4bn - said they would have to make successive large cuts over the next three years to break even.