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Government refuses request from councils for additional funding

While the government has been singing the virtues of public services and public spending over the last few days it appears that councils throughout the UK will not receive any more money in the short to medium term. Many councils have asked the authorities about additional finance as their own liquidity and cash positions are coming under strain.

The government has flatly refused to increase funding for councils throughout the UK and an "on your own" scenario seems to be coming into play. This is set to cause major confrontations in the House of Commons as the Tory party will no doubt look to curry favour with the taxpayer by suggesting that public services are already on the downturn.

In many ways this would play into the hands of the Scottish government where the SNP has been looking to introduce a local income tax since winning power in the Scottish parliament. However, even the SNP is depending upon council tax income from the rest of the UK to fund a potential back hole in their local income tax plans.

As debt continues to rise the UK government is under more and more pressure to deliver more and more services and vital liquidity to councils around the country.

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