The Chancellor of the Exchequer, George Osborne, is set to announce his spending plans for 2015/16 later today, with cuts of £11.5bn across Government departments – and local government in the firing line for an anticipated 10% spending reduction.

Last week it emerged that local government was set to take a further blow to its revenue in 2015/16, with a 10-11% cut expected – on top of the cuts already made to the sector.

Plans for the Chancellor to protect budgets for health, education, pensions and overseas aid will mean the non-protected services – like local government, environment and culture – will take a bigger hit to make up the numbers.

However, while revenue budgets are being slashed, the Chancellor is expected to earmark some spending for capital projects, such as roads, rail, energy, housing and broadband infrastructure.

Further money is also likely to be made available for roadworks – resurfacing roads and filling potholes – in an effort to boost the economy and create jobs.

The Troubled Families initiative has also seen a £1bn boost to its funding over the next five years, raising the number of families in the programme from 120,000 by 2015 to 400,000 over the next spending review period.

Under the expanded programme, there would be new incentives for local services, like the police, health and social services to work closer together to slash costs and deliver better results.

However, hopes for money to boost economic growth have been dashed. Plans for a single capital pot for economic growth, as outlined by Lord Heseltine in his review of the economy, have been dramatically scaled back.

Lord Heseltine upgraded his estimates of the amount of funding needed to boost the economy from £49bn when in his original report, No Stone Unturned, to a later estimate of £70bn.

Now it has emerged that the Chancellor is expected to announce a cash pot of £2-3bn for bid funding for the Local Economic Partnerships.