There will be a £16.5bn shortfall in council funding by 2020, leading to loss of services such as libraries and leisure centres unless they receive an immediate injection of money, a report has warned.
The money to fund many services will shrink by 90% as adult social care and other statutory responsibilities consume almost all of the councils budget, according to the Local Government Association (LGA).
The LGA chairman, Sir Merrick Cockell, said: “By the end of the decade councils may be forced to wind down some of the most popular services they provide unless urgent action is taken to address the crisis in adult social care funding.
Minister Bob Neill said: “Local government accounts for a quarter of all public spending and needs to do its bit to help cut the deficit inherited from the last administration.
By using My Council Services, councils can reduce front line costs by 73%. Councils must now use the new methods of improving services and lowing their internal costs.