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Decisions about the overall level of Government grant to local government are taken in spending reviews.
The local government settlement in the 2010 spending review was determined in the context of the overall level of affordable public spending, consistent with the Government's aim of tackling the fiscal deficit. It took into account a wide range of factors which will affect local authority budgets over the period.
The Government announced at the spending review that they accepted the view of the Independent Public Service Pensions-Commission that there is a clear rationale for public servants to make a greater contribution if their pensions are to remain fair to taxpayers and employees, and affordable for the country.
The cost of the Local Government Pension Scheme to taxpayers has risen from £1.5 billion in 1997-98 to £5.8 billion in 2009 -10. In this context, it is right and fair to take steps to protect local taxpayers from the cost of further increases.