Many pressures arise as a direct result of government policies and requirements and from issues outside local authority control, they told the Consultative Council for Local Government Finance.
To keep up standards, authorities need to spend 2.9 % more than the current total council spending plus realistic provision for pay and prices.
Without additional money, councils and their communities could face:
Implementing the next phase of the government's policy on Care in the Community will cost £226m more than the government has allowed.
And the bill to be met by councils for benefits such as council tax rebates and rent allowances will total £650m.