Local authorities must prepare for the worst as unemployment rises and the recession bites, claims a new hard-hitting report. ‘When it comes to the crunch…' is the second in a series of national reports by the Audit Commission on how councils are responding to the recession. Audit Commission chief executive, Steve Bundred, said: ‘Councils need to move from being reactive to proactive and prepare to combat a wide range of resultant social problems. ‘Of course, none of us can be certain about the future path of the economy, but if the pattern of the last two recessions is repeated, then unemployment may stay high for the next three years.' The report warned as unemployment rises demand on for benefits, welfare and debt help and school places will increase. And long-term unemployment will see an increase in social problems such as domestic violence, mental ill health, alcoholism, drug addiction and anti-social behaviour. The LGA's vice-chairman, Sir Jeremy Beecham said: ‘The commission rightly points out that we now need to look six to 12 months down the track to focus on the support that people and businesses will need in the future – and this is exactly what councils are doing.'