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Last updated: December 15, 2010 1:05 pm

Council cuts: How spending reductions will hit local authorities

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Under spending cuts announced on December 13, local authorities in England face an overall cut of 27 per cent to their “formula grant” from Whitehall over the next four years.

The government’s preferred measure of the impact of the settlement is councils’ “spending power”, a figure which includes not just the formula grant, but also council tax revenue and other grants received by local authorities.

This map, based on data released by the DCLG, shows that no council will see a fall of more than 8.9 per cent using this measure. However, this may disguise the impact of the cuts on deprived regions that are more heavily dependent on the formula grant.

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