Will the cash boost from the government be enough to stop the Tory cuts?
12th December 2007
Alan Whitehead has welcomed the increase in funding for Southampton in the Local Government Settlement, which was one of the most generous in Hampshire and above the amount the City Council said it needed to meet running costs. The increase will add to the mounting pressure on the Conservative-controlled Council to abandon its controversial budget proposals, which include cuts to libraries, swimming pools, playing fields and bus services.
The Local Authority Formula Grant for Southampton has increased by 2.3% (£2.2million), to a total of £96.3 million for 2008-09. This increase is higher than the increase Conservative Cabinet Member for Resources Jeremy Moulton claimed would be necessary to meet rising running costs (see below).
Cllr Moulton stated earlier this year: “This year we are planning for a zero percent increase in government grant. We may in fact get less.”
The Conservative’s proposed budget cuts are predicated on a 0% increase in funding from government; on increasing Council Tax by 5%; on finding £1.2 million out of existing funds to pay for the their proposed 10% Council Tax refund for some pensioner households; and on funding the increased bureaucracy involved in administering the scheme. These measures will be paid for by cuts to local bus services (including school buses), selling off playing fields, abolishing free swimming for under-7s, and cutting back the eligible hours of the free bus pass for pensioners and disabled people to the absolute legal limit.
Dr Whitehead said:
“The last few months the Conservative Council has put out a spate of scare stories suggesting the government will not provide any additional funding for Southampton. But even in the current tough spending climate, we have secured one of the highest increases in Hampshire and significantly more than the Tories said they were planning for. It is now clear there can be no excuse for the Tory budget cuts, which will hurt every pensioner, every parent and every commuter in the city.”
The government also announced further provisional increases in funding for Southampton of 2.1% for 2009-10, and 1.9% for 2010/2011.
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More information
- See http://jeremymoulton.blogspot.com/2007/08/government-must-give-southampton-its.html. In this letter Moulton states:
“This year we are planning for a zero percent increase in government grant. We may in fact get less. If inflation goes up again inline with the current trends our wage bill could increase by £2m. The grants will not.”
- The Conservative budget proposals are predicated on a 0% increase in the government grant, with the grant remaining at £94.051 million.
- A “£2 million” increase would mean increasing the central government grant for Southampton from £94.051 million to £96.051 million; an increase of 2.1%.
- Instead, the government increased funding to £96.258 million, an increase of 2.3%
- The 2004 population projections, which are used to estimate how many people live in an area, incorporate improvements in estimating the effects of international migration on individual local authority areas. These figures remain the best data available at the local authority level for assessing population increases.