Crime and booze and drug addiction will soar in a "second wave" of recession, experts warn today.

The UK faces an avalanche of social problems over the next two to three years, says a report by the Audit Commission.

And the spending watchdog warns that councils are not ready for the looming crisis. The first part of the recession has seen the economy shrink and unemployment rise. But the commission says we are now on the brink of a new set of problems.

As jobless figures continue to go up, there will be big increases in domestic violence and crimes like theft. Unemployment and money troubles will drive many to drink and drugs, while stress will lead to mental health problems.

There are fears hundreds of thousands of young people will end up on the scrapheap with no employment, education or training.

There will even be a third wave of that recession when the UK starts to recover, as the report warns that councils will then face a huge increase in demand for their services.

It accuses some town halls of complacency - and Audit Commission chief executive Steve Bundred says they must do more.

He says: "Those with sound plans focused on local issues, and delivered in partnership, will stand the best chance."

The Department for Communities and Local Government said: "Some have not grasped the need for urgent action."

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