Councils face bills running to hundreds of millions of pounds to make tower blocks safe after the Government said it would not guarantee extra money to pay for vital work to prevent a repeat of the Grenfell disaster.

Ninety-five high-rise buildings in 32 local authority areas have failed safety tests, the Department for Communities and Local Government (DCLG) said yesterday, with hundreds more blocks still to be tested.

The findings prompted Theresa May to announce a “major national investigation” into the use of cladding on high-rise blocks, with every sample so far tested in the wake of the Grenfell found to be unsafe.

But despite emergency fire safety checks being carried out nationwide under central government direction, councils will not be reimbursed for refurbishment work carried out.

A DCLG spokesperson said there was “no guarantee” of central government funding and that it would be "up to local authorities and housing associations to pay" for the work needed to ensure residents’ safety.

The spokesperson said financial support would be considered on a “case by case” basis for those that could not afford to carry out the necessary work, but did not clarify what the criteria for that consideration would be.

The announcement was met with severe criticism from some of the councils affected, with local authorities already having their budgets severely squeezed after years of austerity measures.

Julie Dore, leader of Sheffield City Council, which is among the authorities to have discovered unsafe cladding, said “starved” councils would be forced to make cuts to other areas, including schooling, if central government did not help with costs.

“Local authorities have been starved of money over the past seven years. Our spending power has decreased,” she said. “There is no way we can afford to reclad our tower blocks. If we have to find that money, it will come from other projects, from investing in the fabric of our schools, capital investment in our infrastructure, the money has to come out of that. And it can’t really be done.

“I say absolutely, categorically that the Government should pay. If they can find £1bn to send to Northern Ireland, that gets more spending per capita than anywhere else, to buy 10 votes, then these people, living in high-rise towers, deserve better.”

In Pictures: Grenfell Tower after the fire Show all 51 1 /51 In Pictures: Grenfell Tower after the fire In Pictures: Grenfell Tower after the fire Police have released images from inside the tower where at least 58 people have died Metropolitan Police In Pictures: Grenfell Tower after the fire A still from a video shared by polices what appears to be a stationary bicycle sitting among the ashes In Pictures: Grenfell Tower after the fire A still from a video shared by police shows the remnants of a burnt-out bathroom In Pictures: Grenfell Tower after the fire Picture showing the lifts on an unknown floor Metropolitan Police In Pictures: Grenfell Tower after the fire Emergency crews outside the front entrance to the tower Metropolitan Police In Pictures: Grenfell Tower after the fire Fire crews inspecting flats in the burnt out tower London Metropolitan Police In Pictures: Grenfell Tower after the fire Grenfell Tower is seen in the distance PA In Pictures: Grenfell Tower after the fire A drone flies near the scene of the fire which destroyed the Grenfell Tower block REUTERS/Stefan Wermuth In Pictures: Grenfell Tower after the fire 'Theresa May Stay Away' message written on the messages of support at Latymer Community Church for those affected by the fire Ray Tang/REX In Pictures: Grenfell Tower after the fire An aerial view of the area surrounding Grenfall tower Getty In Pictures: Grenfell Tower after the fire Donated shoes sit in the Westway Sports Centre near to the site of the Grenfell Tower fire Getty Images In Pictures: Grenfell Tower after the fire Messages of support for those affected by the massive fire in Grenfell Tower are displayed on a well near the tower in London AP In Pictures: Grenfell Tower after the fire A local resident stands on her balcony by the gutted Grenfell Tower in Latimer Road Getty Images In Pictures: Grenfell Tower after the fire Messages of condolence are left at a relief centre close to the scene of the fire that broke out at Grenfell Tower, EPA In Pictures: Grenfell Tower after the fire A police officer stands by a security cordon outside Latimer Road station Getty Images In Pictures: Grenfell Tower after the fire Firemen examine the scorched facade of the Grenfell Tower in London on a huge ladder AP In Pictures: Grenfell Tower after the fire A search dog is led through the rubble of the Grenfell Tower in London as firefighting continue to damp-down the deadly fire AP In Pictures: Grenfell Tower after the fire Labour leader Jeremy Corbyn comforts a local resident (name not given) at St Clement's Church in west London where volunteers have provided shelter and support for people affected by the fire at Grenfell Tower David Mirzoeff/PA In Pictures: Grenfell Tower after the fire Labour leader Jeremy Corbyn hugs councillor Mushtaq Lasharie as he arrives at St Clement's Church in Latimer Road, where volunteers have provided shelter and support for people affected by the fire at Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire Labour leader Jeremy Corbyn meeting staff and volunteers at St Clementís Church in Latimer Road David Mirzoeff/PA In Pictures: Grenfell Tower after the fire Firefighters with a dog walk around the base of the Grenfell Tower REUTERS/Peter Nicholls In Pictures: Grenfell Tower after the fire Emotions run high as people attend a candle lit vigil outside Notting Hill Methodist Church near the 24 storey residential Grenfell Tower block in Latimer Road, West London Getty Images In Pictures: Grenfell Tower after the fire Debris hangs from the blackened exterior of Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire A woman speaks to Mayor of London Sadiq Khan outside Notting Hill Methodist Church near Grenfell Tower in west London after a fire engulfed the 24-storey building Yui Mok/PA Wire In Pictures: Grenfell Tower after the fire A woman holds a missing person posters near the Grenfell Tower block REUTERS/Stefan Wermuth In Pictures: Grenfell Tower after the fire Sadiq Khan speaking with a resident James Gourley/REX In Pictures: Grenfell Tower after the fire Ken Livingstone walks near the scene of the Grenfell Tower fire Getty Images In Pictures: Grenfell Tower after the fire Mayor of London Sadiq Khan is confronted by Kai Ramos, 7, near Grenfell Tower in west London after a fire engulfed the 24-storey building Yui Mok/PA Wire In Pictures: Grenfell Tower after the fire Mayor of London Sadiq Khan speaks to a woman outside Notting Hill Methodist Church near Grenfell Tower Yui Mok/PA Wire In Pictures: Grenfell Tower after the fire Volunteers distribute aid near Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire Family and friends of missing Jessica Urbano, 12, wearing photographs of Jessica pinned to their t-shirts gather near Grenfell Tower EPA In Pictures: Grenfell Tower after the fire Family and friends of missing Jessica Urbano, 12, wearing photographs of Jessica pinned to their t-shirts gather near Grenfell Tower EPA In Pictures: Grenfell Tower after the fire Family and friends of missing Jessica Urbano, 12, wearing photographs of Jessica pinned to their t-shirts gather near Grenfell Tower EPA In Pictures: Grenfell Tower after the fire People attend a vigil at Notting Hill Methodist Church near Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire People gather to observe a vigil outside St Clement's Church following the blaze at Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire People light candles as they observe a vigil outside St Clement's Church following the blaze at Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire People attend a vigil at Notting Hill Methodist Church near Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire A man distributes food from the back of a van near the scene of the fire which destroyed the Grenfell Tower block REUTERS/Paul Hackett In Pictures: Grenfell Tower after the fire A firefighter is cheered near the scene of the fire which destroyed the Grenfell Tower block REUTERS/Paul Hackett In Pictures: Grenfell Tower after the fire A T-shirt with a written message from the London Fire Brigade hangs from a fence near The Grenfell Tower block REUTERS/Stefan Wermuth In Pictures: Grenfell Tower after the fire A young girl on her way to lay flowers near Grenfell Tower Getty Images In Pictures: Grenfell Tower after the fire The remains of residential tower block Grenfell Tower are seen from Dixon House a nearby tower block Getty In Pictures: Grenfell Tower after the fire Volunteers prepare supplies for people affected by the Grenfell Tower block which was destroyed in a fire REUTERS/Neil Hall In Pictures: Grenfell Tower after the fire Volunteers move a car to make space for a lorry picking up supplies for people affected by the Grenfell Tower block REUTERS/Stefan Wermuth In Pictures: Grenfell Tower after the fire People distribute boxes of food near the scene of the fire which destroyed the Grenfell Tower bloc REUTERS/Paul Hackett In Pictures: Grenfell Tower after the fire A woman touches a missing poster for 12-year-old Jessica Urbano on a tribute wall after laying flowers on the side of Latymer Community Church next to the fire-gutted Grenfell Tower AP In Pictures: Grenfell Tower after the fire A man looks at messages written on a wall near the scene of the fire which destroyed the Grenfell Tower block REUTERS/Paul Hackett In Pictures: Grenfell Tower after the fire Candles and messages of condolence near where the fire broke out at Grenfell Tower EPA In Pictures: Grenfell Tower after the fire Police carry a stretcher towards Grenfell Tower Rick Findler/PA Wire In Pictures: Grenfell Tower after the fire Emergency services at Grenfell Tower Rick Findler/PA Wire In Pictures: Grenfell Tower after the fire Police carry out a body from Grenfell Tower in west London after a fire engulfed the 24-storey building Rick Findler/PA Wire

The warning came as the youngest victim yet of the Grenfell fire was named as five-year-old Isaac Paulos. He vanished in the dense fumes as his family attempted to escape the blaze from their 18th floor flat, Westminster Coroner's Court was told.

Meanwhile, Grenfell survivors and residents of nearby flats sent a letter to Theresa May and Home Secretary Amber Rudd on Tuesday to set out their demands so that “justice is served for everyone on the estate”.

The group, part of the Justice4Grenfell campaign, wrote: “The investigation must leave no stone unturned. It must identify each and every individual and organisation who must bear responsibility and accountability for this tragedy and the mishandling of the aftermath.”

Cladding was also removed from halls at Edinburgh's Napier University on Tuesday as further blocks across the country were found to pose a fire risk. In Manchester, a total of 16 high-rise buildings owned by One Manchester have now been found to be encased with combustible material.

With almost 100 tower blocks already found to be unsafe – and with more than 500 still to be tested – there are fears that the final refurbishment costs will run to hundreds of millions or even billions of pounds.

Labour’s Shadow Secretary of State for Housing John Healey said the Government response in refusing to guarantee money to councils was “not good enough”.

“The issue of funding is crucial because significant work and alterations now have to be done, and quickly. So it’s essential that ministers make funding available immediately and upfront for any council or housing association that needs it for fire safety measures including recladding and the installation of sprinklers, starting with the highest-risk high-rise blocks," he said.

Grenfell locals adjust to life after the fire two weeks on

Between 2009-10 and 2014-15, local government funding was cut by 20.4 per cent, representing a reduction of spending per person of 23.4 per cent, according to the Institute for Fiscal Studies.

Councillor Robert Atkinson, leader of the Labour party at Royal Borough of Kensington and Chelsea, where Grenfell is situated, said it was “outrageous” that central government would make stretched local councils pay for a national problem.

“In the background of the Government providing £1bn to stuff the mouths of the DUP, it seems the Tories have decided they do have a magic money tree and it seems they should shake it to help local authorities.

“If central government isn't going to finance councils, it’s going to be at the expense of other services. I regard this as outrageous and they clearly don't understand the depths of the problem.

“How many cheques have they given the Queen to repair Buckingham Palace, they are all open arms for the monarchy but not for local government, which has a direct impact on the life of ordinary people.”

Camden Council evacuated four of five tower blocks on Chalcots Estate after firefighters said they could not guarantee the safety of the buildings due to concerns over fire doors, gas pipes and insulation, combined with external cladding.

Camden said it would pay residents’ hotel bills of up to £200 a night and would also offer displaced residents £20 a day for food and toiletries. Residents have been advised that they may be out of their homes for as long as four weeks.

Camden councillor Sian Berry said she believes total costs incurred by the council could reach £20m.

“In the first day we spent £500,000 on hotel rooms alone, obviously we’re going to have to compensate the leisure centre, there is going to be an awful lot of expenses plus the cost of doing the work, which will be under a new contract,” she said.

“The council is going to have to get some money back from somewhere and I worry it might put off or put on hold other projects like people getting decent homes, getting their windows done. It might have a long-term effect on getting improvements done.”

Paul O’Brien, chief executive of the Association for Public Service Excellence, said he was extremely concerned how the scandal will impact local authorities who are already in a “very difficult funding situation”.

“Local government will need to find the funding to address these issues but that will mean that other things are put back, other things are set aside and that’s coming already on top of very, very, very difficult funding situation,” he said.

“Local government funding is the worst it’s been in a few generations, it will be 50 per cent less in 2020 than it was in 2010 and as a percentage of GDP that is its lowest point since 1948, so we’re already in that situation before things like this happen. Having to find further funding on top of this just adds to the problem.”

The missing people from Grenfell Tower Show all 23 1 /23 The missing people from Grenfell Tower The missing people from Grenfell Tower Jeremiah, son of Zainab Dean The missing people from Grenfell Tower Zainab Dean The missing people from Grenfell Tower Malek Belkadi The missing people from Grenfell Tower Tamzin Belkadi The missing people from Grenfell Tower Rania Ibrham The missing people from Grenfell Tower Jessica Urbano The missing people from Grenfell Tower Yasin el-Wahabi and Nurhada el-Wahabi The missing people from Grenfell Tower Ali Yawar Jafari The missing people from Grenfell Tower Anthony Disson The missing people from Grenfell Tower Mohamed 'Saber' Neda The missing people from Grenfell Tower Mariem Elgwahry The missing people from Grenfell Tower Hesham Rahman The missing people from Grenfell Tower Mohamednur 'Mo' Tuccu The missing people from Grenfell Tower Hamid Kani The missing people from Grenfell Tower Mary Mendy The missing people from Grenfell Tower Sheila Smith The missing people from Grenfell Tower Khadija Saye The missing people from Grenfell Tower Berikti Habtom (L) was still missing according to her sister Arsiema Alula (R) The missing people from Grenfell Tower Ligaya Moore The missing people from Grenfell Tower Dennis Murphy The missing people from Grenfell Tower Nadia Choucair The missing people from Grenfell Tower Gloria Trevisan and Marco Gottardi The missing people from Grenfell Tower Sakineh Afraseiabi and Fatima Afraseiabi

It comes after three-quarters of councils in England and Wales said they had little or no confidence in the sustainability of local government finances, according to the Local Government Information Unit (LGIU) think tank. Local government finances faced cuts of £11.3bn in 2015-16, according to Unison, the public service union.

It was unclear whether the same rigorous fire safety testing would apply to other high-rise buildings outside of the housing sector, but NHS Improvement has asked all NHS Trusts to check cladding on hospitals. The Care Quality Commission also advised more than 17,000 care homes, hospices and private hospitals to carry out fire safety checks.

The Government has also encouraged private landlords to send in samples for testing but they are under no obligation to do so, raising concerns for those renting in the private sector.

Questions continue to be raised over the role of flammable panelling at Grenfell Tower.

Combustible cladding is suspected to have aided the rapid and “unprecedented” spread of the blaze, trapping dozens of residents inside and killing at least 79 people.

The Government announced a new independent building and fire safety panel on Tuesday, chaired by former London fire commissioner Sir Ken Knight, to advise on fire safety measures in the immediate aftermath of the Grenfell fire.

Secretary of State for Communities and Local Government Sajid Javid said: "We have been very clear that local authorities and housing associations must not hesitate at all.

"As soon as they learn about any action and necessary steps that they need to take to ensure public safety in terms of fire risk, they must take that action.