COUNCIL CHIEF HITS OUT AT GOVERNMENT OVER FUNDING (Southwark Liberal Democrats)

Southwark Liberal Democrats <info@southwark-libdems.org.uk>

COUNCIL CHIEF HITS OUT AT GOVERNMENT OVER FUNDING

December 1, 2006 12:00 PM

Southwark Liberal Democrat Council Leader Nick Stanton has hit out at local government ministers over the low grant settlement that the Council will receive for the coming year.

"Southwark Council will receive the joint lowest funding settlement in the country," said Cllr Nick Stanton. "Our Government grant will rise by just 2.7% and this will equate to a standstill settlement once inflation is taken into account."

"Over recent years, the Government has placed more and more requirements onto local authorities but has failed to fund these extra duties properly. It is very difficult to do more with less."

"In addition, much of the money we get from Government is ring-fenced for spending on schools and social services. Our spending on lower budget, but still vital, services such as pot holes, libraries and rubbish collections is therefore squeezed."

"Councils such as XX and YY received far higher settlement rises of x% and X%. We see no reason why they should get a higher rise than we do. We question whether there is a political reason behind this settlement."

"Because 80% of council's funding comes from the Government grant and just 20% from Council tax, it means that small increases in overall spending would require much larger increases in council tax levels. However, we remain committed to not increasing council tax in real terms over the course of this administration."