Strange things going on with local government spending
From the Office for Budget Responsibility:
Last year’s budget deficit has been revised down by almost £6 billion to just under £120 billion. Local authorities spent less than we and the ONS expected in 2011-12, adding £2.6 billion to their reserves rather than drawing them down.
First sentence is obviously good news. Second sentence however is rather strange given all the talk about cuts.
Indeed. Could it be something to do with adding to reserves to help deal with second tranche of cuts after the first year's budget cuts?