Chancellor Jeremy Hunt will tell councils to tighten their belts and cut down on consultants and diversity programmes when he unveils his Budget on Wednesday.
Council leaders have been crying out for more cash, as they face mounting financial pressures.
This week Nottingham City Council agreed to slash services and Birmingham is set to follow suit.
The Local Government Association said most councils spent “peanuts” on things like diversity programmes.
The Budget – happening in the House of Commons on Wednesday – will see Mr Hunt reveal his tax and spending plans.
During the statement, he is expected to freeze fuel duty for another year. The tax has not risen since 2011.
