Chancellor George Osborne delivered his long-awaited Spending Review on 25 November, which set out the government's plans for public sector spending from April 2016 to March 2020.
The headlines were dominated by the government's U-turn over tax credits and the fact that the widely predicted cuts of 30 per cent across unprotected government departments failed to materalise, thanks to a £27bn improvement in the public finances since the previous forecasts in July's Budget.
While some public sector budgets were protected, local government was not one of them. As a result of changes, the Local Government Association (LGA) calculates core funding for councils will fall 24 per cent in real terms over the next four years. The government hopes this cut will be offset by giving councils more powers to raise and keep more of their own income, but, even with this factored in, the real terms cut is projected to be 6.7 per cent.
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