Local government faces a 10% cut in its budgets, but an extra £3.8bn for social care, and a further extension of the council tax freeze, in the Chancellor's spending review, announced today.

Under the details laid out by Chancellor George Osborne to Parliament, the extra cash for adult social care will see councils and health services join up to tackle prevention and bed blocking.

Of this,  £2bn of the funding will go directly to the NHS, while a further £1bn will be paid on results.

As expected, the Chancellor announced a 10% cut in the budgets of local government – as well as the budget for the Treasury and the Cabinet Office – on top of the 33% cut it has already faced.

The Chancellor also told parliament: ‘The council tax freeze due to come to an end next April but I don't want that to happen.' He extended the freeze for a further two years, in 2014-15 and 2015-16. Any council tax increases above 2% in that time will require a referendum.

In his speech to Parliament, Mr Osborne paid tribute to the sector and to Local Government Association chairman Sir Merrick Cockell for the savings and efficiencies already made.