New powers have been announced to stop excessive borrowing, risky investments and poor financial decisions in local government.

The government will be able to find early warning signs by tracking every council’s investments, debt, and revenue to spot financial risk.

A consultation has been launched to consider how these powers will work and what other measures could be used.

Local Government Minister Alison McGovern said: "In Woking, Thurrock, and other councils we’ve seen poor investment decisions leaving taxpayers footing a big bill.

"We can’t afford to wait until a council is on the brink of collapse to act. That’s why we want to bring in new powers so we can identify the risks and act before its too late."