Forum Brief: Council funding

The government has published new arrangements for the funding of English councils.

The controversial plans are expected to see a gradual transfer of resources from the south east to the north.

Forum Response: Local Government Association

Sir Jeremy Beecham, chair of the LGA, said: "I am very pleased with the overall increase of eight per cent in government support for local councils and particularly welcome the government's guarantee that all local authorities will receive at least a 3 per cent increase in cash terms - the first time that all councils have been guaranteed a grant increase above the rate of inflation.

"However, I am alarmed to see that the number of specific grants has risen yet again, when only last week the government promised to achieve a reduction by 2005/06.

"Many local authorities will still be facing substantial underlying budget and council tax pressures across many local services including education, care for the elderly and children's services.

"These result not only from pay award increases across the public sector, but also from demographic changes and new targets in areas such as recycling and waste disposal. All this, together with rising expectations of local councils' ability to deliver ever improving services, adds up to substantial pressures on local budgets and council taxes."

Forum Response: Liverpool City Council

Councillor Chris Curry said: "Liverpool has for the past four years made massive efficiency savings, freeing up cash to spend where it really matters - on educating children, looking after the vulnerable and elderly, attracting new jobs and improving the environment. But we need a fairer share of national resources to deliver the kind of quality services the city's residents need and deserve

"No one at Liverpool is cracking open the champagne. The government tells us every year how generous the settlement is...until you read the small print. It's a very complex settlement and we will have to examine it line by line. Like everything from this government, the devil is in the detail.

"We have been promised a much fairer grant distribution system that properly recognises our pressing needs. I hope the government is true to its word, rather than simply moving the cash around, increasing some grants at the same time as cutting others. We need realistic levels of funding, not smoke and mirrors.

"There is little point in increasing the city council's grant, at the same time holding back funding to Merseyside Police and the Fire Service. It's the city council taxpayers that pick up the bill."