A war gaming exercise where council officers battle with budget cuts and ‘economic shocks' has led a think tank to warn of a bleak future for leisure and education services.

The New Local Government Network worked with teams of council staff to model potential outcomes to spending decisions in the fictional authority of Anyborough Council and produced a report, Gaming the Cuts, supported by consultants PwC.

On top of financial concerns and safeguarding priorities, officers faced scrutiny from local reporters, who wrote news stories to show how residents and the media might view cuts or plans to outsource services.

Private sector representatives gave a commercial viewpoint and independent local government experts acted as referees – judging the potential repercussions of the decisions made.

After workshops around the country with more than 50 council officers, three themes came up repeatedly: an end to funding for leisure, recreation and cultural services; education support was reduced and became increasingly commercialised and adult health and social care was integrated and recommissioned.

NLGN Director Simon Parker councils were facing a ‘historical shift' in the services they will be able to provide.

‘There is no getting away from the reality of these cuts – indeed, many parts of the country are facing a tougher future than AnyBorough.

‘But with national support and local innovation, local councils can mitigate the impact of plummeting budgets through imaginative new solutions. Ministers and councillors must act now.'