Town hall spending cuts could leave councils exposed to a higher risk of fraud by disgruntled employees and suppliers, audit experts have warned.

PricewaterhouseCoopers (PWC) issued a sobering warning to all public bodies on 3 November, and urged managers to be on the look-out for fraud committed by staff facing redundancy, or suppliers who may lose contracts, as a consequence of local government's 7% annual budget cuts over the next four years.