Austerity-hit British communities face yet more cutbacks to their local services as town halls sound the alarm over a devastating £8bn black hole in their finances. 

Bus services and litter bins face the chop, while parks may be left unkempt and fly-tipping could go unpunished, the Local Government Association has said. 

Lollipop men and women, maintaining museums and galleries and council tax discounts for people who fall on tough times could also be severely reduced. 

Pointing to the £8bn shortfall in council budgets by 2025, which flies in the face of Theresa May’s claims that austerity “is over”, the LGA’s Tory chairman Lord Porter said vital frontline services will be under threat over the next decade. 

“If the Government fails to adequately fund local government then it will be our local communities and economies who will suffer the consequences,” he said. 

“It will be those who rely on vital adult social care to live independent lives, rural bus routes to get out and about, council tax support to ease financial burdens and those who value clean streets, green spaces and roads fit for the purpose.”

Chancellor Philip Hammond should use the spending review to put councils on a sustainable footing, he said.

His warning comes after Northamptonshire and Torbay council effectively went bust last year. 

“This is the only way to ensure councils can meet their legal duties to provide dignified care for our elderly and disabled, protect children, and prevent and reduce homelessness and protect the wide-range of other valued local services which also make such a positive difference to communities and people’s lives,” said Porter. 

Between 2010 and 2020, councils will have lost 60p out of every £1 provided by central government. 

Fears are also mounting more councils could face effective bankruptcy amid a surge in demand for children’s services, adult social care and homelessness. 

Local authorities are also facing cost pressures including higher National Insurance contributions, the apprenticeship levy and the national living wage, according to the LGA, which represents 349 English councils.

The LGA said it all means there is less money for services such as fixing potholes, cleaning streets and running leisure centres and libraries.

Even if councils were to stand still and deliver the same services they do today – which have already been cut in the last decade – the LGA estimated an extra £8bn will be needed by English local authorities by 2025 for core duties.

Under-pressure town halls are also increasingly diverting funding from optional services for their communities to the measures they have to provide by law.

Among the popular services that councils face having to reduce include rural and post-16 school buses, council tax support, issuing penalty notices for fly-tipping and graffiti and providing and maintaining litter bins, the LGA said.

Support and training for businesses to ensure food hygiene and standards are met, school crossing patrols, the maintenance and provision of cultural facilities such as local museums, and the management of parks and green spaces are all at risk.

Shadow Communities and Local Government Secretary Andrew Gwynne said the warning should be a wake-up call for ministers.

He said: “Under the Tories, 60p out of every £1 that the last Labour Government invested in our councils has been cut – with the most deprived parts of the country hit the hardest.

“This Conservative government won’t stand up for working people and ordinary families are paying the price.”

Unison head of local government Jon Richards added: “Huge council job losses have seen the quality of services to local residents suffer or even disappear altogether.

“The continuing harsh financial climate is likely to mean more posts are axed and a further deterioration in services.

“But these local services are the glue that helps bind local communities together. As they become increasingly unstuck, gaps will open up in the social fabric of our towns and cities, with terrible consequences for us all.”