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Local government leaders have expressed dismay with the amount allocated to social services in the finance settlement for councils.

Sir Jeremy Beecham, who is chairperson of the Local Government Association, said: "I am pleased with the overall increase of 7.4 per cent in government support for local councils, and particularly welcome the increase in the education SSA (standard spending assessment) which has risen by 6.2 per cent.

"However I am sure our local authority members will be extremely disappointed that there is no new money for personal social services," he said.

Beecham said the amount had not altered from the spending review last year, despite the increased pressure on services for older people and children.

The increase for social services is 5.4 per cent compared to this year, as the total government grant to social services for next year will be £9,231 million.

The figure is lower than the £9,344 announced in the spending review in 2000 because of a transfer of money to the Children and Families Court Advisory Support Service (CAFCASS) for guardians. There has also been a cash transfer to the National Care Standards Commission.