COUNCILS must prepare for their budgets to be slashed by almost a quarter because the Government refuses to tell them how much money they will have, the Liberal Democrats claim.

Julia Goldsworthy, the party's local government spokesman, tore into Communities Secretary John Denham for suggesting looming cuts would improve services.

She claimed neither Labour nor the Tories have given any "credible detail" of what lies ahead for town halls.

Several Westcountry authorities have already drawn up plans for substantial reductions in spending over the next four years.

Cornwall Council has drawn up plans for an 18 per cent real terms reduction in funds over from 2010-2014 while Torbay council is expecting savings of up to 20-25 per cent over four years.

Mr Denham has claimed Tory councils were planning ideologically driven cuts and the public should not see a change in services when the axe fell next year.

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Ms Goldsworthy, MP for Falmouth and Camborne, pointed to figures from the Institute for Fiscal Studies which predicts reductions of up to 23 per cent over four years from 2011.

She said Mr Denham should be "doing the responsible thing and advising councils to prepare for the worst-case scenario" highlighted by the IFS.

"Mr Denham seems very keen to talk about this year's Budget settlement, but less keen to talk about Government grants looking ahead," she said.

She demanded details of "guidance he has received from the Treasury about the scale of future cuts that councils will need to make" and demanded: "Do you really believe that efficiencies alone will be able to halve the deficit?"

"Given that no credible detail is forthcoming from either the Government or those on the Conservative frontbench, should Mr Denham not be doing the responsible thing and advising councils to prepare for the worst-case scenario pointed out by the IFS – that is, reductions of up 23 per cent over four years from 2011."

Labour has pledged to halve the £178 billion deficit in four years. But Mr Denham insisted the Treasury's "credible" plan can be "delivered in local government without damaging front-line services, provided that the hard decisions are taken to deliver efficiencies".

"That can be done so that members of the public see their services protected and improved where they use them," he said.

"It would have been irresponsible to try to project exact levels of spending for four years from today, given the uncertainties of the past year.

"Clearly, spending plans will have to be set out, but the timing is a matter for the Chancellor."

The Treasury yesterday announced the Budget would be held on March 24, though it is unlikely to give much detail of swingeing cuts, just weeks before the General Election, expected on May 6.