Local authorities in England have managed to keep their spending within budget this year, despite warnings of ‘black holes', according to latest CIPFA figures.

Total spending is estimated at £88.2bn for 2006/7, an increase of 4.5% over the previous year, which matches the average council tax rise. Government grants, including business rate, rose by 4.9%. The figures coincide with the release by the Department of Communities and Local Government  showing local authorities are forecasting £1.3bn of Gershon efficiency savings this year.