Nearly 75 per cent of responding councils anticipate significant challenges in setting a balanced budget for the 2025/26 financial year, according to an LGA survey.
The survey, published ahead of the Government’s Spending Review in June, highlights the growing financial pressures faced by councils, threatening their ability to deliver key local services.
The LGA has estimated that councils in England are facing a funding gap of more than £8 billion by 2028/29.
The survey also reveals that two in 10 councils lack confidence in their ability to meet statutory duties, a figure that doubles for 2026/27.
The LGA is urging the Government to use the Spending Review to provide sustainable, long-term funding for local authorities to ensure councils can continue to support vulnerable communities, improve local infrastructure, and contribute to national economic growth.
It warned that further budget cuts to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.
For communities, this could mean more older and disabled people struggling to access vital care, less support for families in crisis, more potholes on our roads, less frequent bin collections, cuts to vital bus and home-to-school transport routes, and children left without access to vital special educational needs provision, the LGA said.
Cllr Louise Gittins, LGA Chair, said: “Without adequate funding for council services, the consequences for so many people who rely upon them could be devastating.
“The time for sticking plasters and emergency government bailouts needs to come to an end.
“While the economic landscape is clearly challenging for government, the Spending Review must provide a long-term plan to adequately fund councils so they can provide the services communities rely on, and for them to play their critical role in bolstering growth and turning the Government’s reform agenda into a reality.”