A judicial review sought by Hillingdon Council, Liverpool City Council, Leeds City Council and Norfolk County Council over increased court fees for public law childcare applications and placement order applications was dismissed by the High Court last week.
The councils said that from May 2008, local authorities have had to cope with a 2,500 per cent increase in court costs for judicial care proceedings, which is when the government transferred the costs to councils.
Councillor Stewart Golton, executive member responsible for children's services at Leeds City Council, said: "This disappointing result could have far-reaching financial implications for children's services in Leeds. As a direct result of the new fees, we now face a shortfall of some £540,000 this year."
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