News Item: : Local Government Settlement - It's 4%
(Category: Misc)
Posted by Paul Kelly
Wednesday 20 January 2010 - 12:13:47
The Government yesterday announced a 4% grant rise for English Local Authorities in 2010-11, calling the increase ‘generous’.
Announcing the award, Local Government Minister Barbara Follett (pictured) said, “Four per cent is a generous cash increase from Government that further demonstrates our commitment to providing the public with high quality local services without facing excessive council tax levels.
“As a result of our financial commitment I expect to see councils make decisions that protect front line services in their March budgets and cut the average council tax increase to a sixteen year low next year.
“By working smarter and making the right kind of savings this can be done. But local government - like national government - will have to make tough choices in the years ahead to enable us to reduce the public deficit, restart economic growth and to protect the frontline services that matter most to people.”
Reacting to the news, Lorna Brown, Chair of nalgao said, “On the face of it, this looks like good news. The caveat however is the term 'overall increase' as historically some councils have received more, others less than the 'overall increase'. Councils will still be facing a difficult future, with all services - statutory as well as discretionary - under pressure.”
The Government announcement contains an interesting analysis of expenditure on Local Government. cont/..
Despite pressure on the public purse councils will receive £76.2bn in 2010-11.
This means over the three year settlement period Government will have given councils £8.6bn more. In the ten years from 1997, says the Government, its total grant to local authorities increased by 39% in real terms providing, over the decade, above inflation increases for authorities overall.
Ms Follett also announced whe was putting all authorities on notice that the Government will not hesitate to cap excessive council tax increases where necessary. Capping action has already been initiated against three police authorities in advance to limit their council tax increases to around 3%. “The Government,” said Follett, “has maintained the three year settlement in challenging economic times and there can be no excuse for any authority setting excessive council tax increases next year.”
This news item is from nalgao
( http://www.nalgao.org/news.php?extend.72 )