Authorities are considering far-reaching transformation programmes, aimed at developping new thinking on commissioning, new service delivery models and much greater collaboration with the private and third sectors, PricewaterhouseCoopers LLP (PwC) predicts.

In his forecast before the release of Darling's pre-budget report on November 24, Steve Beet, PwC partner and head of local government practice, said the report would be awaited with a degree of trepidation by many local government leaders and chief executives.

'The certainty that was to be provided by the three year spending agreement in 2007 is eroding as rumours abound that it may be re-opened,' he said.

'Statements of intent around increased public spending to address the impact of global financial crises are encouraging, but as funds are likely to be directed towards major capital projects, we can expect more focus on day-to-day core service delivery efficiency.'

Further reading:

Pre-Budget report date announced

Brown tipped to unveil £15bn tax cut package