Tough new anti-bribery laws could hit local authorities hard, a top law firm has warned.

The Bribery Act, which was rushed through Parliament in the pre-election wash-up, significantly enhances the existing UK laws on corruption.

The legislation includes a controversial clause which leaves people open to prosecution for ‘failing to prevent bribery' – even if it has been carried out by a third party.

Penalties will include unlimited fines and 10 years imprisonment, with enforcement set to start in six months' time.