Local authorities could receive less funding than originally earmarked through the 2010 Spending Review, due to over-optimistic business rates forecasts issued by the Treasury, council chiefs have been warned.

Discussing the local government resource review at a meeting of the Local Government Association (LGA) executive on 14 June, LGA finance director Stephen Jones warned predicted business rates yields for 2012/13 and 2013/14 had already fallen by £100m each year between the Autumn Statement last November and the Chancellor's March Budget.