The average local council will have its government funding cut by 4.4% in 2011-12 but some will be hit with cuts of 8.9%, the secretary for communities and local government, Eric Pickles, has announced.
No local authority will face a cut from the total funding of more than 8.9% over the next two financial years, he added in an address to parliament.
October’s comprehensive spending review saw the chancellor George Osborne cut local authority budgets by 7.1% each year for the next four years. Today's settlement includes £29bn of funding to local authorities in 2011-12 and £27bn in 2012-13.
The cuts could see councils face a funding shortfall of £6.5bn over the next year, according to the Local Government Association. Chairwoman Margaret Eaton said: “This is the toughest local government finance settlement in living memory. Councils now face incredibly tough choices about the services they continue to provide and those they will have to cut.”
"Democratic settlements"
Councils will be told their exact settlements individually, but the department for communities says it will offer those in the poorest areas of the country more money per head than those with lower levels of need. Areas that are most dependent on central government funding have been "insulated" from cuts through the creation of four separate grant bands or "floors".
Pickles said the settlements for councils would be democratic but Labour shadow ministers responded with warnings that cuts would be damaging to services and local communities.
Museums are discretionary services for local authorities, and many fear their budgets will be significantly slashed as a result of today's settlement.
The announcement about settlements comes alongside a new Localism Bill, which promises to devolve central power for local spending and give councils and communities more freedom to run their neighbourhoods.
The bill sets out new rights for local people, including powers to challenge how services such as libraries and transport are being run, and potentially take them over. Meanwhile, reforms to the planning system could see communities given the power to grant planning permission.
No local authority will face a cut from the total funding of more than 8.9% over the next two financial years, he added in an address to parliament.
October’s comprehensive spending review saw the chancellor George Osborne cut local authority budgets by 7.1% each year for the next four years. Today's settlement includes £29bn of funding to local authorities in 2011-12 and £27bn in 2012-13.
The cuts could see councils face a funding shortfall of £6.5bn over the next year, according to the Local Government Association. Chairwoman Margaret Eaton said: “This is the toughest local government finance settlement in living memory. Councils now face incredibly tough choices about the services they continue to provide and those they will have to cut.”
"Democratic settlements"
Councils will be told their exact settlements individually, but the department for communities says it will offer those in the poorest areas of the country more money per head than those with lower levels of need. Areas that are most dependent on central government funding have been "insulated" from cuts through the creation of four separate grant bands or "floors".
Pickles said the settlements for councils would be democratic but Labour shadow ministers responded with warnings that cuts would be damaging to services and local communities.
Museums are discretionary services for local authorities, and many fear their budgets will be significantly slashed as a result of today's settlement.
The announcement about settlements comes alongside a new Localism Bill, which promises to devolve central power for local spending and give councils and communities more freedom to run their neighbourhoods.
The bill sets out new rights for local people, including powers to challenge how services such as libraries and transport are being run, and potentially take them over. Meanwhile, reforms to the planning system could see communities given the power to grant planning permission.