The economic recession could lead to a rise in the number of people with alcohol or mental health problems and in drug misuse, says a report from one of the United Kingdom’s main watchdog organisations.

The public services watchdog the Audit Commission has warned that the recession will start to have a “second wave” effect on the UK, triggering social problems.

Its new report focuses on local government but gives details on how some health problems will also be exacerbated by the economic downturn.

The report is based on academic research, a survey of chief executives …