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Only a bespoke workforce deal with the EU would allow the public sector to recruit top-end talent as well as sufficient numbers of skilled workers and lower-skilled staff, according to finance chiefs.
The Government has ordered a review after being forced to admit a second mistake in as many months in the way it calculates council payments.
Public sector finance experts have urged the Government to increase funding for social care by £14bn in a 'wish list' for a forthcoming review.
Council tax payers face the sharpest rise in their taxes for 14 years, according to the Chartered Institute of Public Finance and Accountancy figures (CIPFA).