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Councils' 'financial blackhole'

Councils will face an ever-widening financial blackhole as the cost of provided basic services increases against a backdrop of budget cuts, the LGA has warned.

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Report: Councils face ever-wider 'financial blackhole'

The financial blackhole facing local authorities is widening by £2.1 billion a year amid "counterproductive" cuts to their funding, a new report has warned.

Waste management is one of the areas where costs are expected to rise as councils face a narrowing budget Credit: Rui Vieira/PA Archive

The Local Government Association (LGA) said the extra 10 percent cut for 2015/16 unveiled in the Spending Review, on top of previously announced cuts of 33 percent, would hit the delivery of public services, while some could be lost altogether.

The LGA believes the costs of running vital services like social care, waste management and the police service will increase against a backdrop of cuts to funding.

This so-called financial blackhole will rise to £14.4 billion by 2020, the LGA said.

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