As councils across the country set their budgets for 2012/13, the cuts agenda may have settled – but we are not out of the woods just yet, as finance chiefs voice their fears for the future. Heather Jameson reports.

As we hit the budget-setting period in local government, local government finance is looking relatively rosy compared with this time last year. There has been lots of pain, with very little gain, but councils are on track to make a proper financial plan for the coming year.