Government shortchanging Northampton with 0.5% grant rise (Northampton Liberal Democrats)

Northampton Liberal Democrats <info@northamptonlibdems.org.uk>

Government shortchanging Northampton with 0.5% grant rise

January 28, 2010 12:00 AM

Northampton - shortchanged by the government again

Senior Councillors have reacted angrily to the government's announcement of a 0.5% rise in its 2010-11 grant settlement for the improving authority.

Government funding, which accounts for 60% of the Council's income, will be increased by just £94,211 to £18,936,385 next year, despite increased pressures on frontline services.

The figures, released by the Department for Communities and Local Government (DCLG) yesterday, are based on a town population of 197,999.

Meanwhile, government statisticians at the Office of National Statistics (ONS), project the figure to be 5% higher at 208,500.

Responding to the announcement, Cabinet member for Finance David Perkins (Lib Dem, Boughton Green) said:

"The average settlement for other authorities was 3%, which means we are being shortchanged by £470,000.

"Had Northampton got its dues, we would not need to increase Council Tax by 2.47% this year.

"Northamptonians are tired of picking up the tab for government underfunding through increases in their Council Tax.

"Frankly, it's time that Councils were funded locally based on peoples' ability to pay, rather than a cocktail of Council Tax and government handouts.

"This year alone, the government's Concessionary Bus Fare scheme is costing local taxpayers £1.3 million.

"Added to these farcical population figures, Northampton is losing out to the tune of £1.8 million.

"It's only thanks to the decisions we've taken to bring costs down and increase productivity that means we haven't yet had to cut services.

"At a time when more people than ever need the Council's help, a 46p per year increase in government support for Northampton is a bitter pill to swallow."

ENDS

Notes to Editors:

1. David Perkins is a former Finance Director and Chartered Accountant. Elected to the Guildhall in 2003, David is also a former European Parliamentary candidate for the Liberal Democrats.

2. Comparative data on grant formulae and local authority settlements can be found by clicking onto the Department for Communities and Local Government's (DCLG) website: http://www.local.communities.gov.uk/finance/1011/grant.htm