The government today confirmed that local authority funding for the next financial year will go ahead as planned under the three-year finance settlement.
But Margaret Eaton, chair of the Local Government Association, said: "Council leaders will continue to work hard for the people they serve but they face tough choices. The money allocated to local government is simply not enough to provide everything ministers promised."
Merrick Cockell, chair of London Councils, said: "As the impact of the downturn bites, our residents are likely to rely even more on our services - but the three-year settlement will fail to account for any of this. Unless the government changes the way it distributes funding, Londoners, as well as well as local authorities, will be left counting the cost."