Councils in England are to learn later how much money they will have next year to spend on local services such as waste collection and road maintenance.
Ministers will present the funding grants for 2015-16, which account for most of councils' budgets.
Last year the government said councils would face an average cut in their spending power of 1.8% in 2015-16.
The Local Government Association has warned services would "buckle under the strain" of more cuts.
But ministers say public satisfaction with local services has increased since 2010 while council tax has fallen.
Most local authority funding comes from central government, with about a quarter raised through council tax.
The provisional settlement, which will need the approval of Parliament, will be presented to MPs by Local Government Minister Kris Hopkins.
The National Audit Office (NAO) estimates that by 2016, government funding for local government will have dropped in real terms by 37% since 2010.
Councils that were heavily reliant on government grants have faced steeper cuts, and Labour has said poorer areas have been hit hardest as a result.
But ministers say the most-deprived councils still have more to spend per household than wealthier areas.
Once again, authorities will be offered cash to freeze council tax bills.
Appearing before MPs ahead of the settlement being published, Communities Secretary Eric Pickles said local authorities had dealt with the squeeze "exceptionally well".
'Significant differences'He told the Commons Communities and Local Government Committee: "I think local authorities have managed admirably in this whole process... and I think they should be commended.
"I am very confident that they will be able to produce quality services given the relatively small amount in terms of their spending power (that has) gone down in recent years."
Councils are legally required to provide some services, such as adult social care, meaning most of the cuts have fallen in other areas, including leisure and culture.
Mr Pickles said he believed councils should have a "discretion in terms of what they provide".
Last month the NAO said some authorities were showing "clear signs of financial stress", but many had "coped well" with cuts, adding that there were "significant differences" in the size of budget cuts faced by different council areas, with those that depend most on government grants the hardest hit.
Last year, the Local Government Association warned that if budgets were cut by 10% in 2015/16, potholes could go unfilled and street lights could be switched off, with funding for some services down by 90%.
This was dismissed by ministers as "shrill and alarmist".
Earlier this month, Scottish local authorities were told they would get funding of almost £10.85bn in return for freezing council tax for the eighth year in a row, but Labour warned that people on lower incomes were the "hardest hit" by funding cuts.
Councils in Wales have been told they will get £146m less in 2015-16 from the Welsh government, an overall cut of 3.4% on this year.
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