Local authorities will be forced to axe billions of pounds' worth of frontline services in 2011/12, after evidence obtained by The MJ suggested ministers' favoured methods of protecting localities would cover just £2.1bn from an estimated cash shortfall of £6.5bn.

Anger over the impact of the coalition's decision to slash council grants by 28% over four years spread to town halls this week, when protestors disrupted council budget-setting meetings from London to Leeds. Birmingham City Council signed off the biggest cuts in local government history – £212m next year.