Councils face average extra annual cost pressures of £2.5 billion to maintain services at current levels, LGA analysis has found.
Almost half of this total is related to adult social care demand and cost pressures.
The figures were published alongside the LGA’s vision for a locally led post-pandemic recovery at its annual conference in early July.
The ‘Build back local’ campaign highlights the local leadership demonstrated by councils in response to the pandemic and how crucial this will be to social and economic recovery.
By working together as equal partners, local and central government can level up communities that feel left behind, it says.
While the Government has provided significant additional funding for councils to meet extra costs and some of the income losses arising from the pandemic, long-term investment in local services will be vital to the recovery, according to the LGA.
However, it is not just about money – devolving and empowering local government in areas such as education, special educational needs and disabilities, skills and planning can deliver more for residents and communities.
Cllr James Jamieson, LGA Chairman, said: “The past 18 months have been incredibly difficult. In this time, the value of local leadership has been evident.
“The COVID-19 crisis has shown what we can achieve when government enables councils to innovate and create new services locally. As we look towards the next phase, it is vital that councils are backed to lead the recovery and support our communities as we learn to live with the virus.
“Levelling up cannot just be a political slogan. It has to mean a radical reset of the relationship between central and local that leads to real change for people’s lives.”