A report by Labour labels the situation across children's services as "unsustainable", pointing to the fact that last year saw the biggest rise in the number of children in care for seven years, with councils facing an estimated £2bn funding gap by 2020.
Labour has called on government to use next week's Spring Statement to provide the necessary funding to place children's services on a sustainable footing by "reversing tax giveaways to large banks".
"The situation across children's services is unsustainable, with a combination of reduced budgets and increasing demand," the report states.
"Government cuts to London boroughs and metropolitan councils means the rise in demand is pushing them towards the financial brink. ?
"The government must also commit to sustainable investment in preventative services as a matter of urgency." ?
Labour's warning coincides with a separate report by the National Audit Office, Financial Sustainability of Local Authorities 2018, which found that local authorities are struggling to juggle higher demands and cost pressures against significant central government funding cuts of nearly 50 per cent since 2010/11
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