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Critics say it creates uncertainty for employees, but local authorities argue it helps save money and keeps council tax down.
Conservative Mark Bee, council leader, said: "I've made it very clear that what I want to see from this process is the creation of a budget that saves money on back office and bureaucracy, protects, as much as possible, frontline services and keeps council tax down.
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The LGA said authorities were having to make "tough decisions" to balance budgets and keep council tax down.
Councils are working hard to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession.
"They have a responsibility to keep council tax low for their residents and deliver the services that people are relying on at this difficult time.
Hopkins said: "We have been working to give hard-working people greater financial security by taking action to keep council tax down.
Yet David Cameron is taking Britain in the opposite direction: look at how hard some of his new "free" schools have fought to keep council estates and poor kids out of their feeder schools.
Leicester, Greenwich, Wandsworth, Cambridge, Ceredigion, Bridgenorth, Darlington, Barking and Dagenham, South Derbyshire and Broxtowe are the latest local authorities to decide to keep council housing after consulting their tenants.
The Local Government Association chairman, Sir Merrick Cockell, said local authorities wanted to keep council tax down, pointing out that "the vast majority" froze bills over the past two years and many have done the same this year.
She also floated the idea of town halls being allowed to keep council tax revenues from new housing for a period of up to three years to fund roads, schools, and other community facilities in new developments.
In what may cause difficulties for the government in next May's local elections, the Local Government Association said it had been handed the worst settlement in decades, with local authorities told to keep council tax settlements well below 5%, even thought they had been given only a 1% real terms rise and a requirement to deliver cashable savings of 3%.
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