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20/11/2003
Funding increase for local authorities
Local authorities will get an overall funding increase of 6.5% in 2004, the government has announced.
Noting the £54.1 billion increase, Local Government Minister Nick Raynsford said that £750 million of the overall grant will be removed from 'ring-fencing', so councils would have more freedom to decide how to spend the funds.
Mr Raynsford said allowing councils "more freedom" gave "increased flexibility" to people who make front line decisions.
"We have listened to local authorities, who have pressed us to reduce ring-fencing, and acted on their request," he said.
The settlement delivers average increases of: 5.1% for authorities with education and social services responsibilities; 3.3% for police and 4.3% for fire authorities; and 2.5% for shire district councils.
An extra £300 million is being made available to ease funding pressures on non-schools services. The general grant for local government will rise by 4.7% to £45.8 billion, the government said.
Mr Raynsford said that the settlement will enable councils to deliver improved services at "reasonable council tax levels".
"I have said many times the current trend in council tax rises is unsustainable," he said.
"We do have targeted capping powers and we are prepared to use them. But with this settlement there really should be no need for excessive increases."
There will be a period of consultation on the proposals.
(gmcg)
Noting the £54.1 billion increase, Local Government Minister Nick Raynsford said that £750 million of the overall grant will be removed from 'ring-fencing', so councils would have more freedom to decide how to spend the funds.
Mr Raynsford said allowing councils "more freedom" gave "increased flexibility" to people who make front line decisions.
"We have listened to local authorities, who have pressed us to reduce ring-fencing, and acted on their request," he said.
The settlement delivers average increases of: 5.1% for authorities with education and social services responsibilities; 3.3% for police and 4.3% for fire authorities; and 2.5% for shire district councils.
An extra £300 million is being made available to ease funding pressures on non-schools services. The general grant for local government will rise by 4.7% to £45.8 billion, the government said.
Mr Raynsford said that the settlement will enable councils to deliver improved services at "reasonable council tax levels".
"I have said many times the current trend in council tax rises is unsustainable," he said.
"We do have targeted capping powers and we are prepared to use them. But with this settlement there really should be no need for excessive increases."
There will be a period of consultation on the proposals.
(gmcg)
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