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Councils told of spending cuts Councils' spending cuts revealed
(34 minutes later)
England's councils will face an average spending power cut of 2.9% in the year 2014-15, the government has announced.England's councils will face an average spending power cut of 2.9% in the year 2014-15, the government has announced.
Communities minister Brandon Lewis said this would allow a settlement "fair to all parts of the country" and called for more efforts to tackle waste. Communities Secretary Eric Pickles said this would allow a settlement "fair to all parts of the country" and called for more efforts to tackle waste.
It would allow an average of £2,089 per household during the year, he told MPs. But Labour said services would suffer. It would allow an average of £2,089 per household during the year, he added. But Labour said services would suffer.
Last year, councils were told they would face an average reduction in "spending power" of 1.7%.Last year, councils were told they would face an average reduction in "spending power" of 1.7%.
In the Commons, Mr Lewis In a written statement, Mr Pickles said: "English local government accounts for £1 of every £4 spent on public services, and is expected to spend some £117bn in 2013-14.
In June's spending review, Chancellor George Osborne announced that a freeze on council tax, due to come to an end in April 2014, would be extended by two years. "So the settlement that we are proposing recognises the responsibility of local government to find sensible savings and make better use of its resources."
Mr Pickles promised a £95m fund "so that the most rural local authorities can continue to drive forward efficiencies in their area".
In June's spending review, Chancellor George Osborne announced that a freeze on council tax in England, due to come to an end in April 2014, would be extended by two years.
Mr Pickles said: "We expect local authorities to protect taxpayers and help bear down on the cost of living. That is why we have provided up to £550m of extra funding to local authorities so they can freeze council tax for the next two years."
In the Commons, Labour's shadow communities secretary Hilary Benn, said: "Why are the most disadvantaged communities, once again, being the hardest-hit?"
He added: "Tough times do indeed require tough decisions but, as this government has shown time and time again, from the bedroom tax to the top rate of tax to local government funding, it takes most from those who have least. It is unfair and it is unjust."
Council funding elsewhere in the UK is the responsibility of the devolved institutions.Council funding elsewhere in the UK is the responsibility of the devolved institutions.