Central government funding to councils will fall by “around 26% over the next four years”, the spending review has confirmed.
More from: Central funding 'falls 26%'
While chancellor George Osborne announced councils would receive cuts of 7.1% each year over the four years, a line in the actual document states “on average, central government funding to councils decreases by around 26% over the next four years”.
It goes on to claim that councils’ budgets will decrease by “around 14% once the Office for Budget Responsibility’s projections for council tax are taken into account”.
The spending review set local government’s departmental expenditure limit at £28.5bn in 2010-11, falling to £22.9bn by 2014-15, a fall of £5.6bn over four years.
The spending review confirmed the un-ringfencing of all revenue grants “except simplified schools grants and a new public health grant”.
The number of separate core grants will reduce from 90 to fewer than 10 and will see more than £4bn-worth of grants rolled into formula grant.