Nine in 10 council leaders believe local authorities will get into financial trouble within five years, while 80 per cent say they will fail to deliver essential services, according to new research by PwC.

Financial pressures caused by austerity measures means frontline services are being cut across the board, and a large number of senior council staff say it will cause problems for cash-strapped authorities.

Two thirds of bosses surveyed by PwC said some councils would face a “financial crisis” due to the cuts.

By region, opposition to Austerity was greatest in the North West with 51 per cent of the public in opposition. Next was the South West with 49 per cent and Yorkshire and Humberside with 46 per cent.

Jonathan House at PwC’s local government team said: “The gap between how councils see their own financial outlook and the health of the sector as a whole has closed.

“While in previous years, leaders and chief executives thought it would be others who would end up in financial crisis, this year for the first time they are more significantly concerned about their own financial context.”