The funding reforms, led by the Ministry of Housing, Communities and Local Government, have been named the Fair Funding Review 2.0.
Councils are also among the 800 services the department is considering how to pay for, with the financial packages due to be announced in December.
A spokesperson for the ministry said: “No final decisions have been made and these figures should be treated with caution.
“We’re committed to fixing the outdated funding system we inherited and ensure that funding is properly aligned with need.
“As part of our Plan for Change, external, we will give people across the country the high-quality public services they deserve, and have made £95m available for Essex Fire and Rescue Authority this year alone.”