RTTNews - Wednesday, U.K.'s Audit Commission warned that England's councils should prepare for worsening social impact as unemployment rises.

Demand for benefits, welfare and help with debt are growing, and social problems such as domestic violence and mental ill-health are expected to follow as the recession deepens, the Commission alerted in a report.

The watchdog said local and national government have made a positive initial response to the recession.

Local government's initial response to the recession has been positive and supportive of their local economies, Audit Commission Chief Executive Steve Bundred said.

Councils need to move from being reactive to proactive, and prepare to combat a wide range of resultant social problems, Bundred added.

When it comes to the crunch, those with sound plans focused on local issues, and delivered in partnership, will stand the best chance.

Tuesday, the Local Government Association said the recession-hit councils face GBP 4 billion deficit in revenue and are poised to cut more jobs in the next twelve months. According to the LGA, nearly 7,000 town hall jobs have been lost in the past six months.

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