6/12//07 Government cuts Gloucestershire Cash by £1.5m

Government cuts Gloucestershire Cash by £1.5m

A Government announcement today means tough times ahead for Gloucestershire.  The Local Government Financial Settlement, which sets out how much cash Gloucestershire County Council will get from the Government next year, has been one of the worst in recent years.  The adjusted cash total has gone up by just 4.4% – an increase of only £4m on an overall budget of £300m. In comparison, RPI inflation stands at 4.2%.  The average County Council will receive 5.7% - over a quarter more than Gloucestershire.

Discounting RPI inflation, the increase is just £217,000, which is more than swallowed by the £1,750,000 increase in Government waste taxes and the costs of increasing levels of waste.  In real terms, accounting for waste costs, this means that Government money for Gloucestershire has been cut by £1.53m. 

The Government itself admits that Gloucestershire should receive at least another £4m extra – but because of their “floor and ceiling” system, this money is instead transferred to councils elsewhere in the country.

Cllr Barry Dare, Leader of Gloucestershire County Council, commented:

“The Government has given Gloucestershire a shoddy deal.  If you take into account inflation and the cost of their new waste taxes, Gloucestershire is actually getting less money than last year.  From this we have to pay for the care of more older people than ever before, whilst still carrying the cost of other Government cuts – such as to school buildings and roads.  The Conservatives have delivered low council tax increases every year since we took control – and I am determined we will do the same this year if at all possible.  With this poor level of funding it will be very difficult to do.

I particularly want answers from the Government about why Gloucestershire has received less than average yet again – even when compared to other County Councils, who’ve also done badly.”