Bradford, Devon, Guildford, Hastings, Kent and Southampton are all thought to be less than one year away from declaring bankruptcy.
Devon County Council’s legal and finance directors recently published a report which revealed that the council's position is “very challenging”, noting "a number of fundamental issues" prompting an “urgent need” for a high-priority review.
It warned that the council faces a "material threat of a section 114 notice" - the notice issued when a council becomes bankcrupt.
Meanwhile, Kent Council's external auditor has warned that it faces a potential 114 notice unless it makes savings of £86m by the end of its current financial year next March.
Auditor Grant Thornton said it is in a "perilous financial position" as a result of inflation and a growing demand for its services.