Baroness Margaret Eaton, chair of the LGA, said the Department for Education (DfE) decided not to pay schools the full amount of the so-called "standards fund" just days before the start of the new financial year on Wednesday.
She warned the move would leave councils significantly out of pocket at a time when they are already facing a 28 per cent reduction in funding over the next four years.
"This will place additional pressures on council budgets through no fault of their own and will mean they either have to reduce their funding to schools at this late stage or absorb the shortfall into their already stretched financial plans," she said.
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