 Council tax rose by 6% last year |
Councils across England find out on Thursday how much government grants will be for next year - warning a shortfall may mean a cut in services. Ministers are said to be determined to keep council tax rises as low as possible ahead of the general election.
On average, three-quarters of council budgets are covered by the government.
The councils have said they will need �1bn more than Chancellor Gordon Brown has been promising, or else services may have to be cut.
Record rise
"There's speculation that, like last year, the chancellor will put more money in the pot," said BBC local government correspondent John Andrew.
Extra grants and a cap on increases in the rate of council tax affected council budgets this year.
They meant the average council tax increase was only 6% - less than half the previous year's record rise.
In the last week, councils including Torbay in Devon and Bath have said they faced shortfalls.
They have warned of cuts in staff and services if the gaps are not plugged.
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