Quote:
Originally Posted by Sephiroth
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If you read the quote in the article it sums it up well.
'These figures show that councils are topping up their reserves where they can, reflecting the absence of a long-term funding settlement for the sector, continued uncertainty around the spending review and Fair Funding Review and an expectation that the long hard winter of austerity is set to continue,’
In other words - councils need to keep money aside because of the uncertainty of how much they will be given in future years.
The amount set aside would barely cover local government spending for three months. As the article also states - some of it is ring fenced so local authorities couldn't even spend it if they wanted to.