Councils are facing a fresh £500m reduction in government funding at precisely the point in the Spending Review period when they expected some breathing space from the relentless cuts agenda.

Figures obtained by The MJ this week indicate ministers' plan to slash council tax benefit (CTB) budgets by 10% when the system is localised from 2013/14 could leave many councils significantly out of pocket in year three of the Treasury's tough, four-year spending settlement.