The credit crunch is delaying a wide range of local authority projects backed by private finance. It is also hampering many councils’ ability to improve efficiency, according to a survey of 200 local authorities by 4Ps, the body that helps them deliver public-private partnerships.

More than a third of local authorities believe current financial instability will have a large impact on projects ranging from urban regeneration, housing and leisure facilities to waste management projects whose timely completion is critical if councils are not to face fines for excessive landfill.