The study by London Councils, on behalf of BBC London, questioned treasurers at 32 boroughs and found that they are expecting to have to make an average of 24% cuts by 2014.
In the video above watch the entire special BBC London TV debate hosted by Jeremy Vine.
Below, BBC London TV reports on the government's spending review and how it will have an impact on public services in the capital.
The cuts
Councils face £2bn budget cuts
London's 32 local authorities currently spend a total of £22bn and if that is reduced by 24%, about £5bn will be cut from the budget by 2014.
BBC London's Karl Mercer finds out who is already feeling the impact of the cuts and where services would be further reduced.
Two councils
Two councils face cuts in own way
Many councils are already preparing themselves for several years of austerity and tight budgets.
BBC London's Paul Curran talks to two London councils, Southwark and Westminster, with contrasting views on how to cope with potential constraints to their budgets.
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