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| Minister outlines funding 'cut of 1.8%' for English councils | |
| (35 minutes later) | |
| English councils will face an average cut of 1.8% in their overall spending power, the government has announced. | |
| Minister Kris Hopkins said the funding grants settlement for 2015-16 was "fair for all parts of the country". | |
| The grants, which account for most of the councils' budgets, help fund services like waste collection and road maintenance. | |
| The Local Government Association has warned services would "buckle under the strain" of more cuts. | The Local Government Association has warned services would "buckle under the strain" of more cuts. |
| Most local authority funding comes from central government, with about a quarter raised through council tax. | Most local authority funding comes from central government, with about a quarter raised through council tax. |
| The provisional settlement, which will need the approval of Parliament, is being presented to MPs by Local Government Minister Kris Hopkins. | |
| Analysis: Mark Easton, BBC Home Editor | Analysis: Mark Easton, BBC Home Editor |
| Back in 1963, the earliest year for which I have found figures, local councils employed about two million people, 200,000 more than Whitehall. Ten years later, and the local authority workforce was close to three million and almost 900,000 greater than central government. | Back in 1963, the earliest year for which I have found figures, local councils employed about two million people, 200,000 more than Whitehall. Ten years later, and the local authority workforce was close to three million and almost 900,000 greater than central government. |
| Today, though, the situation has almost completely reversed, with half a million more people on the national payroll than the local one. Indeed, the number employed by local authorities has fallen more than half a million since the last election. | Today, though, the situation has almost completely reversed, with half a million more people on the national payroll than the local one. Indeed, the number employed by local authorities has fallen more than half a million since the last election. |
| In many towns and cities, the council was once the biggest employer by far. Nowadays, that's much less likely to be true and may be changing the relationship between local people and the local authority. Councils have become more of a service commissioner than the heartbeat of the local economy. | In many towns and cities, the council was once the biggest employer by far. Nowadays, that's much less likely to be true and may be changing the relationship between local people and the local authority. Councils have become more of a service commissioner than the heartbeat of the local economy. |
| Read more from Mark | Read more from Mark |
| The National Audit Office (NAO) estimates that by 2016, government funding for local government will have dropped in real terms by 37% since 2010. | The National Audit Office (NAO) estimates that by 2016, government funding for local government will have dropped in real terms by 37% since 2010. |
| Councils that were heavily reliant on government grants have faced steeper cuts, and Labour has said poorer areas have been hit hardest as a result. | Councils that were heavily reliant on government grants have faced steeper cuts, and Labour has said poorer areas have been hit hardest as a result. |
| But ministers say the most-deprived councils still have more to spend per household than wealthier areas. | But ministers say the most-deprived councils still have more to spend per household than wealthier areas. |
| Once again, authorities will be offered cash to freeze council tax bills. | Once again, authorities will be offered cash to freeze council tax bills. |
| Appearing before MPs ahead of the settlement being published, Communities Secretary Eric Pickles said local authorities had dealt with the squeeze "exceptionally well". | Appearing before MPs ahead of the settlement being published, Communities Secretary Eric Pickles said local authorities had dealt with the squeeze "exceptionally well". |
| What do local councils do? | What do local councils do? |
| He told the Commons Communities and Local Government Committee: "I think local authorities have managed admirably in this whole process... and I think they should be commended. | He told the Commons Communities and Local Government Committee: "I think local authorities have managed admirably in this whole process... and I think they should be commended. |
| "I am very confident that they will be able to produce quality services given the relatively small amount in terms of their spending power (that has) gone down in recent years." | "I am very confident that they will be able to produce quality services given the relatively small amount in terms of their spending power (that has) gone down in recent years." |
| Councils are legally required to provide some services, such as adult social care, meaning most of the cuts have fallen in other areas, including leisure and culture. | Councils are legally required to provide some services, such as adult social care, meaning most of the cuts have fallen in other areas, including leisure and culture. |
| Mr Pickles said he believed councils should have a "discretion in terms of what they provide". | Mr Pickles said he believed councils should have a "discretion in terms of what they provide". |
| Last month the NAO said some authorities were showing "clear signs of financial stress", but many had "coped well" with cuts, adding that there were "significant differences" in the size of budget cuts faced by different council areas, with those that depend most on government grants the hardest hit. | Last month the NAO said some authorities were showing "clear signs of financial stress", but many had "coped well" with cuts, adding that there were "significant differences" in the size of budget cuts faced by different council areas, with those that depend most on government grants the hardest hit. |
| Last year, the Local Government Association warned that if budgets were cut by 10% in 2015/16, potholes could go unfilled and street lights could be switched off, with funding for some services down by 90%. | Last year, the Local Government Association warned that if budgets were cut by 10% in 2015/16, potholes could go unfilled and street lights could be switched off, with funding for some services down by 90%. |
| This was dismissed by ministers as "shrill and alarmist". | This was dismissed by ministers as "shrill and alarmist". |
| Earlier this month, Scottish local authorities were told they would get funding of almost £10.85bn in return for freezing council tax for the eighth year in a row, but Labour warned that people on lower incomes were the "hardest hit" by funding cuts. | Earlier this month, Scottish local authorities were told they would get funding of almost £10.85bn in return for freezing council tax for the eighth year in a row, but Labour warned that people on lower incomes were the "hardest hit" by funding cuts. |
| Councils in Wales have been told they will get £146m less in 2015-16 from the Welsh government, an overall cut of 3.4% on this year. | Councils in Wales have been told they will get £146m less in 2015-16 from the Welsh government, an overall cut of 3.4% on this year. |
| Will you be affected by the proposed local council funding cuts? You can email haveyoursay@bbc.co.uk | Will you be affected by the proposed local council funding cuts? You can email haveyoursay@bbc.co.uk |
| Have your say | Have your say |
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