The LGA called for a significant increase in resources for councils in the final local government finance settlement in England, which was expected to be published as first was going to press.
Ahead of its publication, the LGA warned that a third of councils responding to a new survey – and almost half of all social care councils – are likely to have to apply for emergency government bailout agreements to set budgets in at least one of the next three years.
The LGA has previously warned that one in 10 councils with social care responsibilities, and two-thirds of district councils, face real-term funding cuts in the 2026/27 financial year.
Almost six in 10 councils responding to the LGA survey said it will be fairly or very difficult to set a balanced budget in 2026/27. While eight in 10 feel they will be able to meet their minimum legal duties in 2026/27, this number halves by 2028/29.
More than a third (34 per cent) of responding councils have already applied, or are very or fairly likely to apply, for Exceptional Financial Support in at least one of the financial years between 2026/27 and 2028/29.
Cllr Louise Gittins, LGA Chair, said: “This research underlines the stark reality facing councils. Short-term fixes will not address these challenges. Councils need sustainable funding and reform so they can focus on prevention, growth and delivering the services communities expect.”