Eric Pickles attacks councils for 'stashing away billions' However, Mr Pickles said councils had significantly increased their reserves of funding in recent years and should be prepared to use this money rather than cut services. Figures from the Audit Commission disclosed that English councils" cash reserves stand at £12.9 billion this year, £4.5 billion more than in 2007. "It is unacceptable that some councils are stashing away billions, turning town halls into Fort Knox, whilst at the same time threatening to cut frontline services," Mr Pickles told The Daily Telegraph. Given the steady rise in reserves over the past two years, it is irresponsible that certain sections of local government have chosen to needlessly scare the public with unfounded and baseless accusations. Whilst local authorities should maintain a healthy cushion, it's time for them to dip into their substantial reserves to ensure they protect frontline services, with a view to building up their reserves again in sunnier days to come. The Coalition faced a twin assault from Labour and Tory town halls on Sunday. The council leaders of three of England's biggest cities - Newcastle, Liverpool and Sheffield - warned of increasing "social unrest" and community tensions in the north, which they said had suffered more as a result of austerity than the south. There was also a backlash from rural authorities, mostly Conservative-led, who claim that the shires are disproportionately affected by cuts. The Labour leaders of Newcastle, Liverpool and Sheffield - where Deputy Prime Minister Nick Clegg is an MP - wrote to a Sunday newspaper accusing the Westminster government of promoting "Dickensian" policies. "Rising crime, increasing community tension and more problems on our streets will contribute to the break-up of civil society if we do not turn back," they said. The unfairness of the Government's cuts is in danger of creating a deeply divided nation. We urge them to stop what they are doing now and listen to our warnings before the forces of social unrest start to smoulder. Separately, The Sunday Telegraph reported that more than 120 rural councils were considering a judicial review of the spending settlement for local authorities because it was "grossly unfair" and would hit services in remote areas. Roger Begy, leader of Conservative-controlled Rutland Council and chairman of a new campaign called "Sparse," said: "Rural authorities for the last 10 to 12 years have been seriously under funded in relation to urban areas. According to House of Commons research, the average cuts in central government grants to councils, excluding ring-fenced funding for schools and colleges, will be 3.9 per cent for 2013-14. Cuts for the following year in central government funding in England will amount to 8.5 per cent. Councils are expected to boost their own incomes through business rates, which will deliver more money as the economy recovers and local trade increases, and also receive about £24 billion in council tax.