The LGA has renewed calls for the soft drinks levy to be devolved to councils.
It comes as new figures show the prevalence of obesity in children in reception class (aged four to five) has increased from 9.2 per cent in 2022/23 to 9.6 per cent in 2023/24.
The annual National Child Measurement Programme data also shows that it has fallen in Year 6 children (aged 10-11) from 22.7 per cent in 2022/23 to 22.1 per cent in 2023/24.
For children living in the most deprived areas, obesity prevalence was more than twice as high compared with those living in the least deprived areas.
The LGA says councils should be given the powers to decide how the levy, also known as the ‘sugar tax’, is spent.
It says the levy should be targeted at areas with severe child health inequalities, such as higher levels of deprivation, and greater rates of childhood obesity, tooth decay and physical inactivity.
Cllr David Fothergill, Chairman of the LGA’s Community Wellbeing Board, said: “The soft drinks industry levy was a crucial step in the battle against child obesity.
“We are urging the Government to grant councils control over the levy’s revenues and allocate funds to address the most pressing child health inequalities.
“Councils are uniquely placed to direct resources where they are needed most, creating healthier, more resilient environments for our children.”