Responding to the Budget, Sir Merrick Cockell, Chairman of the LGA, branded as ‘worrying' and a ‘false economy' the prospect of new cuts to funding for local services in 2014/15 and beyond.

Sir Merrick further warned the rising cost of services such as adult social care and a hike in employers National Insurance contributions would soak up an increasing share of local government funds.

Urging the Government to reconsider its approach ahead of the 2015/16 spending round, the LGA chairman said the only way of maintaining public services in the face of the proposed long-term cuts is through a radical transformation of the way they are provided and paid for.

'This has to be based on the idea of allowing local areas to design services around the needs of people and communities,' Sir Merrick said.