Brighton and Hove City Council has been told how much money it can expect to receive from the government next year.
The council will be given £140.5 million in revenue grants for the 2011-12 financial year compared with £153.3 million this year.
And the year after – 2012-13 – it is likely to receive £126.2 million.
The drop of £27 million over two years is a cut of almost 18 per cent before taking inflation into account.
The council also receives money from council tax and fees and charges – for example, for parking, planning applications and licensing applications.
According to the Department for Communities and Local Government, when council tax is taken into account, the council will have £259.9 million in spending power next year.
This compares with spending power of £272.6 million this year.
It will fall to £245.6 million the year after – in 2012-13 – a drop of almost 10 per cent over two years.
Councillors and officers have already been trying to work out how to cut spending to cope with the expected fall in central government grant.
A spokesman for the council said: “We have received details on our funding reductions for the next financial year and we are now analysing the figures.
“We have been preparing for some time for a reduction in the money we receive from the government and a draft of the council’s budget for the next financial year has already been published.
“It sets out how we plan to make £12.3 million savings and improve efficiencies.
“In these tough economic times, the council’s focus continues to be increasing value for the taxpayer’s pound.
“We will be able to give more detail on our funding position for next year in the coming days.”
