There were few shocks or surprises in today's Autumn Statement for local government - which was crucially sheltered from additional in-year cuts to departmental expenditure limits.

Sir Merrick Cockell, chair of the Local Government Association said the chancellor's Autumn Statement acknowledged any further cuts on top of those already announced would push some councils to breaking point.

‘At a time when local authorities are contending with the biggest cuts in living memory, there are signs in this Autumn Statement that local government is being listened to,' Sir Merrick said.

He said the easing on restrictions on housing investment did not go as far as Smith Square's call for such borrowing to be subject to normal rules, it recognised the LGA's call for more flexibility to drive local growth.

Sir Merrick said the LGA's concerns about potentially costly changes to the New Homes Bonus have been taken on board in the revised proposals.  ‘This is good news for local services which otherwise would have taken an additional £400m cut,' he added.

The LGA chairman also praised the commitment to a permanent health and social care fund as a step in the right direction, but warned adult social care needed to be put on a sustainable financial footing or services would suffer.