Watford, Three Rivers and Hertsmere are among a group of councils warning they may “need to review what, if any, discretionary services we can continue to deliver”.

The District Councils Network (DCN), which represents 186 lower-tier councils, has warned of a £900m budget shortfall for local councils over the next two years.

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A survey showed 70% of respondent local councils are considering scaling back leisure services, 66% are considering cuts to community support, welfare support is at risk in 37%, and homelessness support is at risk in 20%.

Meanwhile, the survey also reveals demand for support services is expected to grow at the same time.

DCN finance spokesperson Sharon Taylor said: “District councils face a perfect storm. Inflation and pay pressures are driving up our costs just as the cost-of-living crisis bites for our residents and fuels demand for our services.

“In many places districts’ work to make our areas good places to live and thrive could fall victim to inflation, with cultural services, parks, waste collection and planning facing cuts, and regeneration work threatened by rising costs.

“We call on Government to work with us to address the budget pressures so that we can continue supporting our communities through the cost-of-living crisis and beyond.”

Rising fuel costs are a major concern. Significant pressure is expected on waste collection in 94% of councils, 83% expect significant pressure on leisure centres, while building operation and maintenance is expected to come under pressure at 59% of councils.

Across the country 12 specific projects with a total value of £184m were identified as being at risk with cost hikes of up to 40% in some cases.

Watford mayor Peter Taylor said: "Local councils are under huge financial pressure but, thanks to years of sensible financial management and sound investments, Watford is in a better position than many others. 

"We are responding to the immediate impacts of the cost of living crisis and will continue to prioritise those in need in our town during these very difficult times."

Three Rivers District Council leader and DCN board member Cllr Sarah Nelmes said: “We are well placed to respond to the current economic challenges and will continue to work hard to protect the vital services our community rely upon, whilst ensuring best value for money.”

Watford Borough Council, Three Rivers District Council and Hertsmere Borough Council have been asked whether any specific services in their areas are at risk.

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