Disappointment greets settlement

24 January 2007
 
Authorities face another grim year after final figures from the Department for Local Government and Communities confirmed expectations of a low grant settlement across the country.
Local government minister, Phil Woolas, believes the settlement provides a ‘stable and predictable’ funding base.
However, he also warned authorities to keep their tax increases in England below 5%, saying he would cap any authority thought to be making ‘excessive’ increases.
Devon County Council hit out at the increase after it was confirmed there was no increase for road maintenance. It means Devon will receive £49 a person less than the average for English counties, or £36M less funding for public services.
Devon is set to receive £122.98M through formula grant, the revenue support grant plus the county’s share of the business rate, an increase of £4.75M or 4% – just below the retail price index of 4.4%. Initial financial forecasts indicate road maintenance costs will rise by 7% in 2007/8, largely driven by oil, steel and aggregate prices.
Meanwhile, cash-strapped Hull City Council could be forced to slash more than 300 jobs to enable investment in frontline services, including road and pavement improvements. The council faces a £25M budget shortfall in 2007/08, and also blames increased demand for public services driven by a growing elderly population, and a below-inflation increase in government funding.
A spokesman said most of the cuts would largely involve back-room and administrative posts, ‘and wouldn’t affect frontline services’. The cabinet also proposes to continue to cut red tape and reduce wasted resources ‘such as the £3M saved this year on the cost of using consultants’.
Elsewhere, Northampton has indicated it may cut back on street cleaning services to address its £3.15M shortfall (Surveyor, 18 January).

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