Money
Media playback is unsupported on your device
Video

Councils warned to plan their cuts by Wales Audit Office

Cracks are starting to appear in local government finances as budget cuts really begin to bite, a report has said.

The Auditor General for Wales has published a new report on the effectiveness of local government planning.

He has also suggested that local authorities should be more radical in the way they try to save money. Until now, Welsh councils have been spared the big budget cuts that have been imposed on their English counterparts.

Alan Morris, director of the local government group at the Wales Audit Office, told Felicity Evans on the BBC's Good Morning Wales programme that local authorities are "really going to have to tighten their belts".