WHITEHALL

London stakes claim in the dash for cash

London Councils has come out fighting for more cash for its members in the run-up to the comprehensive spending review (CSR).
The association will outline the case for more money to go to the London Boroughs and for changes to the grant formula.
This year's settlement will be crucial for all local authorities, partly as it is expected to be very tight. In addition, the CSR 07 will shift to three-year settlements. As a result, any funding formula flaws used this year will not be changed until 2010/11.
London Councils argues there are:


London Councils is calling on the DCLG to ensure all government departments include ACA in all its grants.
Under the scheme councils in high cost areas are given extra grant to counteract the higher costs – particularly for staffing.
According to figures from the association, London has lost out on £180m in ACA.
Head of local government finance at London Councils, Jo Mennell, told The MJ: ‘Londoners deserve the same level of services as everyone else.' She has asked for all 2007/08 grants to include ACA and all future funding form government departments to include the extra grant.
There are also problems with the formulae for children's and young adult's social services, after a new formula was introduced in 2006.
‘There are recognised technical weaknesses with the formulae,' Ms Mennell said. ‘We are very disappointed that government officials have not done any development work to address these weaknesses.' She called on the government to continue using damping grant to soften the impact of the formula.
London Councils will launch its campaign for fairer funding for councils next Wednesday (18 July).
See

SUBSCRIBE TO CONTINUE READING

Get unlimited access to The MJ with a subscription, plus a weekly copy of The MJ magazine sent directly to you door and inbox.

Subscribe

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Login

Already a subscriber?