Welsh council chiefs have called for a ‘thorough reassessment' of whether the whole system of local government finance is fit for purpose, if councils are to avoid ‘comprehensive service failure'.

The admonition follows news funding for local services is likely to be cut by a further £192m next year, a 4.1% cash reduction, following the publication this week of the draft Welsh Government Budget.

By contrast, the NHS in Wales and social services look set to enjoy a 3.5% funding boost worth £425m over the next two years.