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With neither of the main political parties producing detailed spending plans the funding settlements for Town Halls are a "guessing game" according to the Local Government Association. But a good guess is that it will be good bit tighter than at present. Local Government spends £105 billion at present and demographic pressure mean it would have to rise to £110 billion in 2013 to provide the same level of service – due to more school children and more elderly people requiring care.

The LGA's Finance Director Stephen Jones believes the cut will be £11 billion – around 10%. This is equivalent to double the annual highways budget. The LGA argue that central Government could save £4.5 billion by less cumbersome inspection and regulation demands. Beyond that Jones suggests there will need to be a "debate" and hints at how the Barnet's EasyCouncil model of charging for those wanting extra services could be the answer.

5 comments for: Councils face £11 billion spending cuts

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