The government must allow councils to borrow so they can rectify anomalies in equal pay in councils, say Local Government Employers.
Local authorities have until the end of this month to implement equal pay reviews of their workforce to bring the pay of women and men into line.
Council leaders are urging ministers to reconsider rules that allow councils to borrow a maximum of £200 million, so that councils can ensure that equal pay is met without jeopardising services.
Steve Bullock, chair of the Local Government Employers, said: “The issue of equal pay is not restricted to councils. Any big employer in the country could be vulnerable to a challenge on this issue. Local authorities want to strike the best balance between pay, equal pay and pensions to ensure the best package for both staff and the taxpayer and we need the help of ministers to do this.”