One in four councils in England say they could go bankrupt unless they are bailed out by the government, according to a new survey by the Local Government Association (LGA).

The LGA said the affected councils would likely need to apply for emergency government bailout agreements to stave off bankruptcy within the next two financial years (2025/26 and 2026/27).

A total of 195 councils (62 per cent) responded to the survey, which was conducted between September and October.

The LGA called on the chancellor to take “immediate action” in the autumn budget to stabilise council finances and “avoid another hammer blow being delivered to local services”.

The LGA could not say which or how many councils in Devon took part in the survey, but according to research earlier this year by the Department for Levelling Up, Housing and Communities, Devon County Council (DCC) has the biggest debt of all the county’s four major local authorities - almost £508 million, the equivalent of £624 per person.

Earlier this year, DCC was given a £95m bailout from the government to plug the deficit in its Special Educational Needs and Disabilities (SEND) budget, which was set to reach £163 million by the end of the financial year 2025.

But to bring the budget back into line, DCC will need to spend almost £29m from its £100m reserves as part of a ‘safety valve agreement’ with the department of education.

Despite this, DCC could overspend on the SEND budget by more than £38 million, which will likely require a £7.4m cut in services.

Cllr Louise Gittins, LGA chair, said it was becoming “increasingly difficult” for councils to protect vulnerable children and families while keeping basic services, such as street cleaning and the mending of pot holes.

“Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day,” she said.

In response to DCC’s financial situation, South Hams District Council leader Julian Brazil said: “They're just struggling on until May’s local elections next year, and then the whole thing's going to collapse. We're assuming that they won't be running the council then, but Devon County Council is definitely one of those that are in the position to go under.”

DCC has been asked to comment.