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NAO report looks at how local authorities have coped with cuts, and says DCLG needs a better understanding of the impacts on services.
Commission's interim report says local government finance system is broken, and proposes full retention of business rates and reform of council tax.
£122m has been allocated to 22 local authorities, but the remainder of the £300m HRA borrowing programme is still unallocated.
The DCLG has published its technical consultation on proposals for the distribution of Revenue Support Grant to local authorities in 2015/16.