Local authorities are sitting on a ‘financial time bomb' of job losses, bad debt, fraud and increasing demand on services because of the recession, according to a major report. Published by consultant Experian, the Quarterly insight study predicted there would be a three-tier impact from the recession. The Midlands, Wales and the North East would be hardest hit, with many areas in the South being less effected. Chester-le-Street, Sedgefield and Wear Valley councils were forecast to be worst effected, while residents in Blaenau Gwent, Kingston-upon-Hull,Inverclyde and Glasgow were likely to suffer the most financial stress. City of London, Kensington and Chelsea, Westminster, Richmond upon Thames, Wandsworth, Kingston Upon Thames and Camden likely to escape the worst. Simon Martin, director of Experian's public sector division, said: ‘The full impact of recession has yet to be felt on local authorities which will need to plan carefully for the future. Councils must understand where that impact will hit hardest. Local authorities are already seeing increasing demands for many of their services as a result of the recession. ‘
