Following Prime Minister Boris Johnson unveiling new tiered lockdown levels, local authorities will face “significant social and economic costs of higher restrictions”, the Local Government Association has said.
Councils in tier three areas, which currently only includes Merseyside, will see almost all household mixing banned, pubs and bars closed.
Schools and nurseries will remain open, Johnson said.
However, before new measures were introduced, LGA research found that local authorities need a £10bn boost by 2024 to cope with the demands of coronavirus.
This includes ringfenced funding of £1.9bn for children’s services to cover the cost of a spike in referrals after lockdown.
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