Minister announces spending cuts for local councils

Monday, 13 December 2010 06:12

The Secretary of State for Communities and Local Government, Eric Pickles, announced the results of the spending settlement for local councils over the next two years.

It had been anticipated that the review would impose the toughest local government settlement since the Second World War with a total cut in the government grant to local councils of 26 per cent over three years.

The average cut facing each council for 2011-12 and 2012-13 will be 4.4 per cent. No council will face a cut of more than 8.9 per cent per year. Mr Pickles said that the most vulnerable areas will be insulated from major cuts. He also said that it is not healthy for some areas to be so reliant on the public sector.

Mr Pickles announced that there will be no rise in Council Tax this year and asked councils to provide more for less. He said: “Residents can veto Council Tax increases through a local referendum.”

Responding to the announcements, the Shadow Secretary of State for Communities and Local Government, Caroline Flint, said that the cuts were being made too fast and too hard and should be evenly spaced over four years.
 

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