The eight Core Cities have given notice to quit membership of the Local Government Association (LGA), in the second major blow to the association's finances in the space of a week.

Last week, the LGA was hit by a £2m cut to its top slice cash – or 7.3% of its budget – when Chancellor George Osborne announced departmental spending cuts in his budget. While local government funds were untouched, the association was told its budget would be slashed.