1.7% council spending cuts

Councils in England will see their spending power cut by 1.7% next year, Local Government Secretary Eric Pickles announced today.

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Pickles: 'Councils must do their bit'

An estimated 70% of council income will now be raised locally compared to 56% under the centrally-distributed "begging-bowl" Formula Grant system, according to the Communities and Local Government Department (DCLG).

From April 2013, councils can channel this greater local control into encouraging local jobs and local firms via a new business rate retention incentive that rewards them for growth. It could potentially add £10 billion to the economy by 2020.

– Communities and Local Government Department

The DCLG also published 50 examples of where it believed councils could save money, ranging from opening a coffee shop in libraries to scrapping the post of chief executive.

Councils must keep doing their bit to tackle the inherited budget deficit because they account for a quarter of all public spending and still get through over £114 billion of taxpayers' money each year.

– Eric Pickles, Local Government Secretary

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