Whitehall has faced a backlash from council leaders, the Local Government Association (LGA) and experts after it suggested authorities should use reserves to plug funding gaps.

The Department for Communities and Local Government (DCLG) published figures last week showing 444 councils have £22.5bn in ‘non-ringfenced reserves' and insisted they should ‘make efficient use of their assets and resources to best meet the needs of their local communities'.