NEARLY half of councils providing vital social care say they are likely to seek emergency government bailouts to balance budgets within three years, a survey published today reveals.

The Local Government Association (LGA) says increasing demand and costs will jeopardise front-line services, impacting neighbourhood support and reducing investment in prevention.

Its survey found that 47 per cent of upper-tier councils, which provide adult and children’s social care, are likely to apply for exceptional financial support (EFS) by 2028-29.

And 69 per cent of all councils said it will be difficult to set a legally required balanced budget next year.

The EFS process allows councils to cover day-to-day costs by borrowing or using capital receipts, but the LGA insisted it is not a sustainable way of managing council finances and addressing gaps in funding.

Unite general secretary Sharon Graham said: “This report must act as a wake-up call to government.

“When councils go bust, it is workers and communities that pay the price.

“Time and again we have seen councils reach for the lever to cut jobs and services: this is austerity by any other name.

“We need real investment in our public services and this must be paid for through a wealth tax and local authority debt relief.”

GMB national secretary Rachel Harrison said: “Fourteen years of Tory underfunding has had devastating impacts on local government services and workers.

“This year’s pay offer must be fully funded for all councils and schools to ensure no more services are cut and jobs lost to plug the funding gaps.”

A government spokesperson said it was making “almost £78 billion available for council finances next year,” delivering “fairer funding” and giving “councils greater certainty to plan.”