We finally got to hear how to solve the incredible economic mess left by Labour – already near to £1 trillion of government debt, or £22,400 for every man, woman and child in the country. The announcements will see the annual increase in debt brought to a manageable state by 2015.

I can’t say it’s entirely a Lib Dem budget but equally I can’t say it’s a Tory budget – but it is a coalition budget.

It cuts 26% from the government grants given to local authorities. But that makes up around 65% of local authority budgets with the remainder coming from council tax and fees. The government has also said if councils keep council tax rises at 0% they be funded an extra 2.5% by government.

So overall this represents about a net cut of 5% a year and roughly 15% over the 4 years.

For the last 4 years Southwark Council led by Lib Dems made annual cuts of 5%.

If Southwark Labour undertake an exemplary 2011 census rather than the pickle they made in 2001 the government grant it, and other public bodies such as health,  receives will be significantly better and reverse much of the CSR impact.

To soften this further the government announced:

– big cuts to ring-fencing

– keeping all council rents and sales with local authorities

– £16bn for schools – so 600 of the original 700 schools will get funding.

– real terms growth in money for schools

– £2.5Bn of Pupil Premium

– £2bn more for social care

– Free travel retained but linked to retirement age by 2020