It is warned that the local authorities in Britain will find it difficult to facilitate essential services following the announcement of high spending curb by the government on Wednesday.

Besides, one commentator has augured that some councils might require an official stimulus. Main services including home help, community care and assistance for the elderly are expected to face a hard hit by the budget curbs, the Local Government Association cautioned.

The central government funding for local authorities is claimed to be reduced by 28% over the next four years – marking a fall to £21billion from £28billion. With this cuts in jobs and services including refuse collection, subsidized housing, public transport and road maintenance are likely to be affected.

"Town halls will now face extremely tough choices about which services they can keep on running," said Margaret Eaton, chairman of the Local Government Association. "These cuts will cause real pain and anxiety for millions of people who use the services councils provide, from keeping children safe to ensuring that streets are clean”.

Over 26,000 public sector employees have been cautioned against their jobs to be at a boosted risk, Birmingham City Council, Europe's largest local government authority, outlined.