English councils face a funding gap of £4bn over the next two years, new Local Government Association (LGA) research has found.
The shortfall has increased by £1bn since the LGA's analysis in July as it now accounts for the Bank of England's August inflation forecast.
By 2024-25, the LGA found the cost of delivering council services will have gone up by £15bn in the three years since 2021-22.
Chair of the LGA's resources board, Pete Marland, said: ‘Councils remain firmly in the eye of the inflationary storm, and severe funding and demand pressures mean that council finances are under pressure like never before.
‘The easy savings have long since gone.
'Councils are faced with tough decisions about cutting valued services, and increasing council tax and fees and charges during a cost of living crisis.'
A Department for Levelling Up, Housing and Communities spokesperson said: 'We have made £5.1bn of extra funding available to local authorities through the local government finance settlement, making almost £60bn available for the sector – up 9.4% on cash terms on 2022-23.
'We continue to monitor pressures on all councils and stand ready to talk to any council that is concerned about its financial position.'
