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Abstract
The Secretary of State wants local authorities to cut both manpower and spending. But it is local authority budget makers who face the harsh choices posed by cash limits on the one hand and national wage settlements on the other. That they have come much closer in respect of manpower than spending to what the Secretary of State wants, reflects the trade‐offs facing them in the labour market. New information reveals how brutally these bear on some sections of the workforce rather than others, and how they affect costs both to authorities and to ratepayers.