The Government's move to lower the threshold of council tax increases before a referendum is ‘surprising' and will leave councils struggling, finance experts have claimed.

Speaking in the aftermath of the Spending Review, the Institute for Fiscal Studies' Ben Zaranko said the headline 3% increase for councils was ‘more like 1.8% per year' if you strip out social care reforms.I addition, the front-loaded nature of the cuts will increase pressure in later years.