Wednesday, 15 December 2010

Poor Areas Hit By Local Government Cuts

Some of the poorest areas of England will see the most severe local government funding cuts next year. Communities secretary Eric Pickles announced that the average cut to local authority budgets in 2011/12 would be 4.4 per cent, with the highest being 8.9 per cent. He said the cuts had been managed to focus resources on the most vulnerable groups. However analysis of the figures has shown some of the most deprived areas, such as Hackney, Newham, Tower Hamlets and Islington, will be hit with the most substantial reductions. Questions were also raised about the figures used by Mr Pickles. The figures he quoted in parliament include other grants and income councils receive. The actual reduction in formula grant is greater, at 9.9 per cent in 2011/12 and 7.3 per cent in 2012/13. Mr Pickles said an extra £30 million has been transferred from the CLG to local authorities to mitigate the cuts. A grant of £85 million is being made available to councils in 2011/12, and £14 million in 2012/13, to further reduce the damage. Full details of Council allocations can be downloaded from the CLG website.

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