Government spending cuts are hitting deprived areas such as Waltham Forest and Redbridge the hardest, a report says.

Real terms spending in both boroughs is down, but like much of the rest of the country, councils are prioritising spending on care for the elderly and vulnerable.

A think tank, known as Centre for Cities, has published a report highlighting the areas of the country worst hit by government austerity measures, with budgets and overall spending levels being reduced to make savings and clear debts.

The report has shown deprived areas of the UK are among the worst hit by spending cuts.

Councillors at both Redbridge Council and Waltham Forest Council believe their regions are among those worst affected.

In Redbridge, the council’s funding has fallen by nearly 60 per cent since 2010, with £50 million cuts expected in the next three years.

Over a similar time frame, central government spending has risen by five per cent.

A spokesman for the authority said: “This report confirms what we have been saying for years – that London boroughs, like Redbridge, have been hit hardest in absolute terms by central government austerity measures.

“At the same time our budgets have come under intense pressure from a rapidly rising population, and substantial increases in homelessness and social care pressures resulting from national policies such as the benefit cap and reductions in funding in addition to being given extra responsibilities we need to administer and fund, such as public health and council tax benefit.”

They said that the council has responded by becoming more efficient, increasing its income and supporting people to live independently and are less reliant on social care support and has since been recognised as one of the most productive authorities in the country.

The spokesman added: “But no council can do the impossible. Our budgets are under immense strain and if they continue to fall we will have difficulty meeting our statutory obligations, let alone deliver the range and excellence of services to improve the quality of life in Redbridge, which our residents deserve.

“Our residents shouldn’t have to take more pain. Ministers need to think again. Redbridge is a lean, high performing council but we cannot solve complex national problems such as the housing crisis and the costs of an ageing population on our own.

“If ministers are serious about high quality care and housing, they need to start backing us with the money to build new homes, grow our economy and help the most vulnerable.”

Redbridge Council believes the Government’s proposed changes to the funding formula would mean urban areas and cities will be targeted with further cuts in the future.

In Waltham Forest, central government has cut half a billion pounds worth of funding from the council’s overall budget and the authority has had to make £120 million worth of savings since 2010.

The authority now spends 50 per cent of its overall budget on social care alone and despite the council having lost its entire annual £12.7million fund for its Sure Start centres since 2011, it has managed to keep all of those centres open.

Cllr Clare Coghill, leader of Waltham Forest Council, said: “We have worked tirelessly to deliver the very best we can for our residents and to meet our aims of improving our residents’ life chances, keeping our borough clean, safe and green, and ensuring everyone has a decent roof over their head.

“However, with an ageing population, the financial situation facing local authorities across the country are not sustainable, and the Government must bring forward a long-term social care strategy in their much-delayed green paper as a matter of urgency.

“There is much to be proud of– a recent Local Government Association finance peer challenge showed we have managed council finances well in the face of these significant challenges. Residents should know we will continue to work with colleagues and partners to deliver the high-quality services residents rely on day in, day out in Waltham Forest.”