A local government union has denied backing no-cuts budgets despite its members voting to use reserves and prudential borrowing to plug funding gaps.

Unison’s local government committee debated the idea of ‘legal no-cuts budgets’ at its service group executive earlier this month.

But a spokesperson for the union told The MJ: ‘Nobody is disputing councils must set legal budgets.

‘While we continue to campaign vigorously against the cuts being imposed by central government, Unison believes council reserves should be prudent, but not excessive.’

Several Conservative MPs admitted they had planned to vote against the settlement, but were persuaded by the offer of the transitional fund and the increase in the rural services delivery grant.