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Local authorities prepare for cuts of up to eight per cent next year

Councils are to be hit with spending cuts of up to eight per cent next year, under plans set out in the provisional local government finance settlement.

Grants paid from central government to local councils to fund services including early years provision and children’s social care will total £27bn next year, down from £29bn this year.

The average cut across local authorities is likely to stand at three per cent, or £75 per household, slightly less than this year when the average slashed from local budgets stood at four per cent.

Overall, the money councils receive from central government is being cut by 28 per cent over the next four years.

Despite this, the total early intervention grant given to councils to fund children’s services will rise from £2,270m this year to £2,412m in 2012/13. The sum is not ring-fenced, so councils are free to spend the cash as they see fit. 

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