Warning over council funding cuts

AOL Money Staff

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

The Local Government Association (LGA) said the extra 10% cut for 2015/16 unveiled by the Chancellor in last week's spending review, on top of previously announced cuts of 33%, would hit the delivery of public services, while some could be lost altogether.