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Page last updated at 08:19 GMT, Monday, 21 June 2010 09:19 UK

Councils 'face very very difficult spending decisions'

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A leading public finance expert has warned that the government's plan to freeze council tax will mean cuts to local services.

Speaking on the Today programme Bob Summers, from the Chartered Institute of Public Finance and Accountancy (Cipfa) said that "it obviously means there are going to be intense prioritisation of services... its going to mean all authorities are facing very, very difficult decisions in the coming months".

In tomorrow's budget, Chancellor George Osborne will reveal whether to introduce a levy on public sector workers of an extra 2.5% of their pay in pension contributions, or cut the pension pay-outs, to help meet the soaring costs of public pensions.

Mr Summers added that an overhaul is a "marvellous opportunity" for the five million workers who contribute to public sector schemes.

"There are seven schemes," Mr Summers explained, "the NHS, local government, police, fire service, and many more. It is a vast picture".

"We very much welcome this across the board look at public sector pension saving."

The coalition government has recruited Labour ex-cabinet minister John Hutton to find ways to cut the soaring bill for public sector pensions.


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