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Spending Review: 10% cut to local authority budgets

Chancellor George Osborne has announced a 10 per cent reduction in local authority funding

Delivering his 2015/16 Spending Review, Osborne announced local government would have to share in the ‘kind of sacrifices central government is making.’

Speaking to the House of Commons today, he said: ‘The local government resource budget will be reduced by 10 per cent in 2015-16, but when all the changes affecting local government I will set out are taken into account - including local income and other central government funding – local government spending reduces by around 2 per cent.’

Under plans announced today, the Department for Communities and Local Government will see a £126 million saving in its resource budget and a 10 per cent reduction in its administration budget. The department will also share accommodation with the Home Office in 2015-16.

Scotland, Wales and Northern Ireland will meanwhile see a two per cent reduction in funding.

A £2 billion-a-year Single Local Growth Fund has also been announced to provide funding for Local Enterprise Partnerships.

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