The CCN said the increases in the national minimum wage and the national living wage have added new pressure on already-struggling councils.
Almost one in five local government leaders believes their council is likely to effectively go bankrupt this year or next year, the Local Government Association (LGA) said on Wednesday.
Another body representing councils in England, the County Councils Network (CCN), said seven in ten local authorities are not confident they can balance the book in the coming year.
The CCN said more than 30 leaders have written to Levelling up Secretary Michael Gove, urging him to provide extra funding in the Local Government Finance Settlement that is due to be delivered this month.
It comes as Mr. Gove is scheduled to give evidence to the Levelling Up, Housing and Communities Committee later on Wednesday on the financial distress in local authorities.
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