MPs accused the government of being complacent over the English councils’ cash crisis driven by Westminster cuts.

The Commons public accounts committee warns in a report published today that local authorities face an “unsustainable” £5 billion funding gap within 10 years.

It has called for the government to step in with additional funds to fend off a worsening crisis, with chairwoman and Labour MP Meg Hillier warning that there was “only so far the elastic can be stretched before it snaps.

She said: “Central government’s response to this looming crisis smacks of complacency.”

The committee said that while PM Theresa May had announced a £20bn-a-year cash injection for the NHS, it did not include any additional funding for social care, which is provided by councils.

Shadow communities and local government secretary Andrew Gwynne said that the committee’s report confirms that ministers are doing “absolutely nothing” to pull councils out of financial quicksand.

He said: “Funding cuts and growing social care costs have pushed local authorities to the brink, forcing councils to cut back on public services like libraries, waste collection and bus services.”

In the Commons, Derby North Labour MP Chris Williamson referred to analysis published yesterday by the Local Government Association showing that councils face an “£8 billion black hole” by 2025.

He asked during Treasury questions: “When will the Chancellor stop behaving like a public services vandal and start resourcing the public services that communities desperately need?”

Chancellor Philip Hammond said the government would “look at the overall spending envelope” and its “priorities across the entire range of public spending” in the spending review next year.

Lamiat Sabin is the Morning Star’s parliamentary reporter.