COUNCIL chiefs are set to release a draft budget for the next financial year which will see a reduction in available funds by around £20 million on the current year.

The exact details of where is not known at this stage but it is thought there will likely be an increase in council tax combined with a change in how some services are provided.

A reduction in government funding, combined with soaring demand for children and adult social services, has left councils across the country facing huge budget pressures.

As more details of last week’s Autumn Statement have been revealed, it has emerged Swindon could lose out by up to £3 million following changes to a house building grant.

The New Homes Bonus is given to council’s based on the number of houses built each year.

Swindon is one of the fastest expanding towns and so has received among the highest amount per head in recent years.

The money is not ring-fenced so can be spent anywhere the council likes.

However, the Government is now looking at reducing the amount in the pot by £800 million to go on social care costs.

This leaves Swindon particularly exposed and the local Labour Group has accused George Osborne of pulling the rug away from local councils.

Councillor Jim Grant (Lab, Rodbourne Cheney) said: “The proposed changes to the New Homes Bonus are a huge moneygrab from the Chancellor from local areas like Swindon which build the most homes in the country.

“Losing as much as £3m a year is a huge loss for Swindon. This could have been used to protect our elderly, helping to deliver the new infrastructure we need to meet housing growth, cleaning our streets and resurfacing our roads.

“The Government are now basically forcing local authorities to permit housing developments no matter what effects it has on local areas and are now saying that when Swindon builds these houses, they won’t receive the government funding they were originally promised.”

But Coun Toby Elliott (Con, Priory Vale), the cabinet member for strategic planning, says work is being done to help ensure Swindon does not lose out.

He said: "Since 2010 Swindon has benefitted from more than £19 million of New Homes Bonus protecting much needed services, a scheme the Labour party wished to cut entirely if they had won the General Election in May.

"From the work I am doing on the Government planning panel we are looking around restructuring NHB so that those Councils such as Swindon, which are proactive at getting the houses delivered for hardworking, aspirational families and individuals, will see the benefit. My door is always open to Councillors of all parties if they wish to discuss the facts."

The leader of the council David Renard (Con, Haydon Wick) has made no secret of the fact there will be tough decisions to be made and last week said: “We were expecting many of the announcements so I do not think local government is better or worse off following the Autumn Statement.

“Difficult decisions are always going to have to be made.

“The Local Government Association has set out the potential impact on services and how councils are likely to change and I would subscribe to those views.”