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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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Government: 'Local authorities protected from spending reductions'

A spokesman for the Department for Communities and Local Government said councils "have been protected from further spending reductions" over the course of next year.

Local Authorities have been protected from further spending reductions for 2013-14, where the average spending power reduction is just 1.7%.

Government is helping councils grow their local economies through bespoke city deals, over £650 million New Homes Bonus, 24 Enterprise Zones and £770 million in Growing Places Funding.

In addition the Government is offering a £450 million third year's council tax freeze - potentially worth over £200 to Band D residents.

However, councils still account for a quarter of all public spending - £114 billion - so it is vital they continue to play their part tackling the inherited budget deficit by making all of the 50 sensible savings Ministers recommend, such as better procurement, greater transparency, using reserves more creatively and sharing back offices.

– Department for Communities and Local Government spokesman

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