Councils and police across Shropshire were today finding out how much money they will have to spend on local services.

Local authorities were bracing themselves for sharp cuts to their funding from Whitehall for the next two years, expecting an average 10 per cent cut to their budgets for next year alone, and were expecting to learn whether they will be able to pay for services including swimming pools, public toilets, parks and road repairs.

Thousands of jobs are expected to be lost at local authorities across the country as a result of the cutbacks and services scaled back to make up for the shortfall in Whitehall funding.

Some 2,400 jobs could be lost across Shropshire Council as the authority looks at ways to save up to £76 million over the next four years.

Hundreds of council staff could be axed as part of a drive by Telford & Wrekin Council to make at least £25 million of savings.

The government grants to local authorities and police forces were being revealed at the same time as the coalition Government unveiled its long-delayed Localism Bill.

West Mercia Police is to axe nearly 300 jobs as the force looks to save up to £10 million over the next three years.

Communities Secretary Eric Pickles attempted to sweeten the pill for voters by announcing new powers for residents to assume control of community services and vote on new housing developments.

Communities will be able to collectively buy and take over the running of pubs, shops, libraries, and post offices which face going out of business.

People will also be able to block council tax rises with local referendums.

The Government has said it expects only “lazy” councils will make deep cuts to compensate for the cuts, while creative local authorities will be able to deliver public services more cost-effectively.

Speaking ahead of today’s announcements, Mr Pickles said: “This is about providing more council services for less money.

“I think it is going to be a tough settlement, but I think it’s one that local authorities will be able to manage relatively easy. A number have been making preparations for this.

“Whoever won the general election would have seen real substantial cuts in local authority spending.”

He added: “I am very confident that local authorities will be able to manage this process sensibly.”

By London Reporter Sunita Patel