Local authority leaders have warned that they will have ‘no choice’ but to cut services unless the new Prime Minister provides them with enough funding to tackle the cost-of-living crisis.

Welcoming PM Rishi Sunak into his new post, the Local Government Association (LGA) said that councils are working hard to support residents during the current squeeze on household finances.

However, the LGA urged the Government to help close the funding gaps which have made it difficult for local authorities to deliver the necessary level of service.

Responding to the announcement that Rishi Sunak is to become the next Prime Minister, LGA chairman Cllr James Jamieson, said: ‘On behalf of councils across England and Wales, I would like to congratulate Rishi Sunak on becoming our new Prime Minister. As a former local government minister and chancellor, the PM already understands the mounting pressures that the sector face and the funding that councils desperately need to ensure they can keep vital services running for the many people who rely on them.

‘Across the country, councils are working hard to support residents with the cost of living; looking after our most vulnerable children and adults; building desperately needed homes; supporting children with SEND and providing accommodation to those fleeing Ukraine and Afghanistan.

‘However, without certainty of adequate funding – and given the funding gaps they are seeing – councils will have no choice but to implement significant reductions to services including to those for the most vulnerable in our societies.

‘In these difficult times, we all need to come together and work in the best interests of our residents. The Government needs to ensure councils have the funding to meet ongoing pressures and protect the services that will be vital to achieve its ambitions for growth and to produce a more balanced economy, level up communities and help residents through this cost-of-living crisis.’

Cllr Tim Oliver, chairman of the County Councils Network (CCN), urged Mr Sunak to renew the Government's commitment to levelling up and to turbocharge devolution.

Cllr Oliver also called on the new PM to retain the commitment of the previous administration to allocate more of the £13bn committed to tackling the NHS backlog towards councils to help reduce pressure on social care services.