Half of councils have cut jobs in the past few months and seven in ten anticipate further redundancies, the Local Government Association has said.
An LGA survey of 129 authorities on the impact of the recession on local government found that councils were experiencing reduced income and increased demand in areas including homelessness services and debt advice.
LGA chair Margaret Eaton said: “”It is a highly unpleasant decision for any council to cut jobs but they also understand that local people are suffering. Councils are working hard to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession.
”Town halls are facing some difficult budget decisions this year against a backdrop of falling income at a time when more and more people are turning to the town halls to help them through tough times.”