Local government faces major challenges as the credit crunch bites, forcing councils to make unpopular decisions, including a reduction of staff and increasing council tax. With planning receipts and other revenue streams also in decline, councils need to find other sources of income. So what can they do? A central tenet of PM Gordon Brown's strategy to reduce the effects of recession is to stimulate consumer spending - so retailers and producers need to advertise their wares, if they are to reach consumers, and maintain profits and market share.
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