Council debt across Britain has risen sharply in the past decade, with new figures showing a 60 per cent increase over the last ten years.
Responses to Freedom of Information requests from 254 councils revealed that around one fifth of council tax income is being used to cover interest payments on mounting debt.
The data shows that local authorities collectively owe more than £148.5 billion, with annual interest charges reaching approximately £12.8 million.
Research also highlighted that emergency housing accounted for £2.2 billion in council spending, while libraries, culture, heritage and tourism services received £1.1 billion.
Across the 317 local authorities in Britain, it is estimated that more than £4 billion a year is being spent on servicing debt alone.
Much of the long-term borrowing stems from projects such as transport investment, town centre regeneration and major infrastructure schemes. Of the debt, £10.8 billion is owed between local authorities, while almost three quarters is owed directly to the Government.
Cllr Pete Marland of the Local Government Association described the situation as a fragile position for councils, warning that financial pressures have been building for a considerable time.
He stressed the need for a sustainable and long-term financial model for local government, ensuring that councils are adequately resourced to meet rising costs and increasing demand.
