The Local Government Association (LGA) has been dealt a severe blow to its finances in the Budget, with the news its funds will be slashed by £2.2m in less than two weeks' time.

The Association's top-slice cash - the money that comes directly from central government grant - was due to be cut by £1.5m in 2014-15. However, yesterday communities secretary Eric Pickles informed LGA chairman Sir Merrick Cockell of a more severe budget cut - of a further £2.2m - to come into force on 1 April this year.