Local government faces further major cash cuts during the current Spending Review as chancellor George Osborne slashed Whitehall budgets to fund a £5.5bn investment in roads, schools and science projects this week.

As part of a £4bn cut in Whitehall spending to 2015 the DCLG will need to lose £445m from its local government budget in 2014/15, the second largest departmental cut after defence, while health will lose nothing. However the cut is offset by a standstill DCLG budget for next year.