An inquiry by the housing, communities and local government select committee into local government finance and the 2019 Spending Review concluded that "current uncertainty for local government and the lack of funding for services must be addressed as a matter of urgency".
The report said rising demands of social care, both for adults' and children's social care, are placing increasing strain on local government budgets.
"These services help some of the most vulnerable in society so must be properly funded," it said.
The report warned that the current four-year financial settlement for local councils, which has allowed them to plan ahead, is now coming to an end. A three-year Comprehensive Spending Review - which was due to be delivered in the autumn - will now be shelved until late 2020 due to issues surrounding the UK's exit of the European Union.
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