Councils across England are to be given an extra £1.6 billion in funding to deal with the coronavirus emergency after complaints from local authorities that services could suffer.
And a warning has been issued to councils that parks must stay open during the pandemic.
The Local Government Association (LGA) has said the situation could cause some councils to “take extreme cost-cutting and rationing measures soon”.
The pandemic emergency has increased pressure on council services like support for those living with disabilities and social care, while income from areas like parking fees has dropped.
Local Government Secretary Robert Jenrick said the extra money will boost the backing councils have received to cope with the pandemic to £3.2 billion.
An extra £300 million will go to devolved administrations, with Scotland getting £155 million, Wales £95 million, and Northern Ireland £50 million.
Mr Jenrick said: “I promised local government would have the resources they need to meet this challenge.
“We stand shoulder to shoulder with local government and my priority is to make sure they are supported so they can continue to support their communities through this challenging time.
“Up and down the country council workers are the unsung heroes as we tackle this virus.
“They are in the front line of the national effort to keep the public safe and deliver the services people need.”
Speaking at the daily press conference, Mr Jenrick said he had “made it clear” to councils that all parks must remain open after some closed their gates in recent weeks.
But he warned people must abide by social-distancing rules, and not congregate in the green spaces.
He said lockdown measures were harder for those without gardens or open spaces and that “people need parks”, saying they needed to be accessible for “the health of the nation”.
Mr Jenrick has also asked councils to keep cemeteries open to allow families to grieve for their loved ones.
He pointed to the death of 13-year-old Ismail Mohamed Abdulwahab, from Brixton, who died after contracting Covid-19.
He said the tragedy was compounded after the family could not attend his funeral.
“That is not right and it shouldn’t have happened,” he added.
“For clarity, funerals can go ahead with close family present.
“Social distancing measures must be respected, but families must have the opportunity to say a respectful goodbye to those that they love.”
In a letter to Mr Jenrick before the extra funding was announced, the LGA said “radical action” to prevent councils “rationing spending” was needed
The organisation said that unless more funding was received, the situation would end up “harming both the long-term continuity of existing services and the Covid-19 response at a time when both are so vitally needed, something we all wish to avoid”.
The letter also stressed the loss of income being generated by councils.
It said: “Local authorities are suffering severe income loss from a range of services from leisure, parking, bus operations, planning and commercial waste.
“Many councils rely heavily on this income to fund their annual expenditure – on average, 10% of total gross service costs are funded through fees and charges, going up to 25% on average for shire districts in particular.”
Coronavirus: Everything you need to know