London Councils have criticised the amount of money town halls will be awarded by Government to provide services next year.
The cross-party group, which represents all 32 London boroughs, warned that the capital's local authorities will be “stuck in survival mode” without more funding.
Ministers announced on Wednesday that the settlement for 2025-26 had been boosted by more than £700million to cover social care costs and tax hikes.
It includes a £200million increase in the social care grant and a further £515million for the burden councils across the country face due to the increase in employer national insurance contributions announced in the Budget.
But London Councils anticipate that the capital will still be left with a £500million shortfall amid "immense service pressures and spiralling costs".
Almost all boroughs are expected to increase council tax by the maximum 5% from April and many are looking for areas to make cuts to cover the soaring price of providing statutory services.
Deputy Prime Minister Angela Rayner also announced the "largest-ever investment" to "break the cycle of spiralling homelessness" with London awarded an almost £80million year-on-year increase to help bring down record levels of people living in temporary accommodation.
However, this was branded "simply inadequate" as the city now spend £4million every day on temporary accommodation.
Claire Holland, Chair of London Councils and Labour leader of Lambeth, said: “Borough finances look set to be stuck in survival mode.
"After fourteen years of structural underfunding, spiralling costs, and fast-rising demand for services from residents in need, the strain on borough budgets is enormous.
"We welcome the additional support being provided by the Government and the increase to homelessness funding is a step in the right direction. However, we are concerned about resources for temporary accommodation being squeezed, and this is a key funding pressure in the capital."
The Labour leader of Redbridge Council, Kam Rai, said: "Our settlement from central Government must reflect our borough's urgent and growing needs.
“More than 14 years of Tory Government austerity has significantly impacted Redbridge. We've lost over 54p for every £1 of government grant funding, resulting in over £150million less to spend on local services every year.
“Redbridge is the third-lowest funded London council per head. Imagine the difference it could make if we received the average funding across London. We would have an additional £66million annually for local services, which could significantly improve the quality of life for our residents.
"Despite the financial pressures, we are committed to providing essential services with the funding available to us, and we will continue to work with the Government to ensure funding and grant opportunities are made available for us to meet the demands we face."
He also branded the cash to tackle homelessness "simply inadequate" after learning his borough would receive just over £2.7million.
"We note the £1billion of funding announced today to tackle, reduce, and prevent homelessness, much of which is recycled, not new," Mr Rai added.
"While we welcome any funding, the £2.755 million additional Homelessness Prevention Grant is simply inadequate. This is a mere drop in the ocean considering we spent £52million on temporary accommodation last year.
“There is a housing emergency, and it’s fundamentally broken in London. We require radical reform to the rental market so tenants can plan for the longer term and not constantly fear eviction and huge rent rises."
