Chancellor George Osborne and Treasury Chief Secretary David Laws made the announcement this morning as they outlined how the government will make £6.2bn of public sector cuts.
Government grants to local authorities will be reduced by £1.165bn as part of the cuts. But the government will also remove the ringfence around more than £1.7bn of grants in 2010/11, to give local authorities more autonomy over their budgets.
"This will give local authorities much greater flexibility to deliver on their priorities, and it is consistent with our ambition to devolve more powers to local government," said Laws.
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