Councils in England will see their spending power cut by 1.7% next year, the Local Government Secretary Eric Pickles has announced.
The Shadow Chancellor Ed Balls says George Osborne's creditability has been damaged by today's Autumn Statement.
There have been more riots in Spain tonight as against the drastic austerity measures announced by the new government.
It announced it plans to cut government spending by twenty seven billion euros, or twenty two billion pounds.
Spain already has the highest rate of unemployment in Europe; twenty four percent of people are currently out of work.
Our economics editor Richard Edgar reports.