Chancellor George Osborne has signalled he expects further sharing of local government and other public sector services to help deliver a 10% cut in council budgets for 2015/16.

In his detail of the £11.5bn savings due to be made that year for the next Spending Review, almost half of which will be in further efficiency savings, Mr Osborne said that local government had to continue to reduce staff and merge managements.

He also hinted at ‘greater integration of local emergency services' although he praised local government for having ‘already taken difficult decisions to reduce staff numbers, share services and make savings.'

The Chancellor also called for much closer integration between health and social care saying: ‘I will be bringing together a significant chunk of the health and social care budgets. I want to make sure everyone gets a properly joined up service where they won't have to worry if that service is coming from the NHS or the local council.'

He added: ‘Integrated health and social care: no longer a vague aspiration but concrete reality, transforming the way we look after people who need our care most.'

Ministers will also be rolling out the community budgets network and projected savings are expected to contribute to the 10% cuts in council budgets by 2015/16.

On Monday ministers announced an extra £200m for the troubled families programme for 2015/16 with new incentives for police, health and social services to work together.

Before accessing the goverrnment's payment by results funding for working with families, local agencies will also have to produce a detailed plan setting out how they will join up services in order to produce savings.

This week Conservative Party chairman Grant Shapps said councils could find another 10% in savings by more merging of services saying ‘the last cut anyone who works for an organisation makes is themselves – that's human nature.'