News

The government has finalised the funding settlement for local authorities for 2004-5 amid growing concerns that it will force many councils to cut services.

Despite councils receiving an average grant increase of 7.3 per cent next year, many fear it will not be enough in view of tougher rules forcing councils to pass all of their education grant increases on to schools.

To maintain other services, some councils want to increase council taxes. But the government has already warned 56 authorities that "excessive" rises will not be allowed.

Cambridgeshire Council, meanwhile, has confirmed it is to appeal against the government's decision not to allow it to spend extra schools money on other services (news, page 11, 22 January).