A lack of extra support for children’s services in Chancellor of the Exchequer Jeremy Hunt’s mini budget is set to see cuts in areas including home to school transport, they warn.
Councils also warn that autumn statement’s increase in the National Living Wage is set to cost them around £230m next year.
The warning has come from councils that responded to a snap survey by the County Councils Network (CCN).
Leaders of more than 30 councils have now written to Levelling Up Secretary Michael Gove calling for extra funding for children’s services.
Without this “councils are likely to face the prospect of outlining painful reductions to frontline services” they warn.
Council tax hikes and plundering reserves “leaving them at unsustainable levels” are also expected unless more money for services such as children’s social care and school transport is provided by central government. These areas are contributing to a £4bn funding deficit in local government over the next three years, CCN warns.
Last month CCN warned that the cost of school transport for children with special educational needs and disabilities (SEND) that county councils face could reach more than £1bn for the first time over the next five years.
This autumn Nottingham City Council and Birmingham City Council became the latest local authorities to issue a Section 114 Notice, for councils facing financial challenges to ensure they cannot make new spending commitments.
“We understand that public finances are tight, but the autumn statement provided no further funding to help ease the existing financial pressures for councils - pressures which are largely outside of our control,” said CCN finance spokesperson Barry Lewis.
“In fact, those have been added to with the increase in the National Living Wage, adding hundreds of millions to our budgets.
“The results of our new survey show that our councils’ financial position is significantly worse than before the autumn statement.
"The majority of the CCN’s member councils will now have no choice but to increase their planned level of service reductions, reduce investment on growth-creating capital projects, and levy higher council tax rises: all of which impact our residents.
“For some even this drastic action will not be enough, with seven in ten now no longer confident they can balance their budget next year.”
He called on the government to address funding pressures facing councils, in particular around their children’s social care and school transport commitments, when ministers finalise the Local Government Finance Settlement later this month.
