Councils in England have been told that they will have to cut their spending again next year by 1.7%, following a first round of budget cuts last year.
Matthew Taylor, chief executive of the Royal Society for the encouragement of Arts, Manufactures and Commerce, told the Today programme that it would be wrong to think that these cuts were not "having an impact on people's lives", adding that youth services and leisure facilities were most likely to be hit.
Director general of the Institute of Economic Affairs, Mark Littlewood, suggested that a solution to the problem would be to have a "much more localised tax and spending regime" whereby local authorities would have more control over their own budgets.
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