Last week's Spending Review confirmed what most councils already knew. Public spending is being transformed and with it local government. Despite all the excitement about an additional £27bn windfall being spent on tax credits and policing, this was still a budget designed to cut spending and achieve a surplus. But as more detail emerges of both budget cuts and changes, it's becoming increasingly evident that the changes in funding and responsibilities will require local government to revolutionise the way it operates in the years ahead.

At the heart of this revolution is the radical reform of local government finance, confirmed in the Spending Review, which is moving local authorities towards becoming more self-funded. Central government grant is falling as the revenue support grant is phased out and total grant reduces from £11.5bn in 2015/16 to £5.4bn in 2019/20 – a decrease of 56.3% in real terms. In its place, councils will rely far more on business rates and council tax to fund services and invest in local economic growth.