I produced a (possibly) false proof of why $C^1$ implies locally Lipschitz for $f: \mathbb R^n \to \mathbb R^n$.
Please could someone tell me where my mistake is?
Proof:
Let $f: \mathbb R^n \to \mathbb R^n$ be continuously differentiable and let $x_0 \in \mathbb R^n$. The goal is to find a neighbourhood of $x_0$ on which $f$ is Lipschitz continuous.
Since $f$ is differentiable by the definition of the derivative given $\varepsilon > 0$ there exists $\delta > 0$ such that
$$ \|x-x_0\| < \delta \text{ implies }\left \|f'(x_0) - {f(x) - f(x_0) \over x - x_0} \right \| < \varepsilon$$
In particular, there is $\delta$ such that $\left \|f'(x_0) - {f(x) - f(x_0) \over x - x_0} \right \| < 1$ which implies that for $\|x-x_0\| < \delta$ we have $$ \left \| {f(x) - f(x_0) \over x - x_0} \right \| < 1 + \|f'(x_0)\|$$
Hence $B(x_0, \delta)$ is a neighbourhood of $x_0$ on which $f$ is Lipschitz continuous with Lipschitz constant $L=1$.