The Assembly Government will lay its final budget today.

Councils claim that the draft budget, published in the autumn, would force them to cut services and put up taxes.

Finance Minister Andrew Davies has demanded better value for money from public services in the face of a spending slow down.

Growth in public spending has fallen from 6.8% in the first Assembly term to 1.8% over the next three years.

Welsh Liberal Democrat leader Mike German said: "I don't think the Government is going to shift on the big issue which is money for local government.

"I think local authorities are going to find it extremely difficult to keep within their budgets."