FINANCE

Money matters

Sometimes, I am glad there are very few residents who like reading about local government finance – and now would be a very depressing time to start.

The latest consultation paper from the DCLG on formula grant distribution is a real horror story which would strike fear into the hearts of many.
There is plenty of slashing and cutting – up to £15m for some boroughs to their grants for adults' and children's' social services.
There is the potential removal of floor damping – revealing the full extent of the screams and wails of the victims of millions of pounds of further cuts.
And there is also some brutal slicing from the adjustment of the area cost adjustment – which could cost boroughs such as Ealing at least £1m.In a way, I hope the consultation paper really is just scaremongering and nothing more will come of it than the odd sleepless night.
But, if the Government really is serious, we might as well all give up and catch the night bus home. The reality is that the story being told from the DCLG will lead to a horrible ending where local authorities will not be able to support many of their young people or the elderly in their communities.
London's local authorities have already expressed dissatisfaction with the formula to calculate the Personal Social Services sub-block. Unfortunately the message has not got through – it must be the London accent.
The worst-case scenario for many councils in the capital is that the DCLG's consultation paper will lead to a reduction of around £10-16m. Local government has already been set steep ‘apples and pears' targets for efficiency and performance and has responded. We've said it before and we'll say it again – it's time central government revealed what's lurking inside its own departments and those infamous quangos. n
Richard Ennis is director of finance at Ealing LBC

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?