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COUNCIL CAP TO BE 'SUBSTANTIALLY EASED'

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Environment secretary John Gummer is to announce this week that the cap on council spending will be substantially e...
Environment secretary John Gummer is to announce this week that the cap on council spending will be substantially eased over the next two years, reported the Sunday Telegraph (p5).

The announcement spells victory for education secretary Gillian Shephard, who argued that the existing rules would prevent an extra £800m earmarked for education services being spent on schools.

The paper says the Treasury is believed to have agreed to raise the cap on spending by between 15% and 20% over the next two years.
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