Local government minister Brandon Lewis has derided council chiefs' calculations pointing to a £5.8bn funding gap between March 2014 and the end of 2015/16.

This year's updated ‘Future Funding Outlook' report from the Local Government Association indicates the £5.8bn shortfall would arise from a combination of continued government funding cutbacks and rising demand for services.

In previous years the LGA study has consistently stated the funding gap – the difference between the money councils will receive or generate and the amount of cash required to maintain services levels - is due to increase by £2.1bn each year until it reaches £12.4bn by 2019/20.