Comprehensive Spending Review: funding cut for councils

Councils across England will have their funding cut by 28 per cent over the next four years it was announced in today’s Comprehensive Spending Review.

Chancellor George Osborne revealed a 7.1 per cent reduction in local government funding each year until 2014 but in return he offered councils the removal of ring-fencing on revenue grants.

Osborne announced local authorities will be given direct control over Council Tax benefits.

He said: "We will give local authorities greater flexibility to manage Council Tax together with direct control over council tax benefit, within an overall budget that will be reduced by 10 per cent from 2013.”