09/10/2007 - Spending Review is Worst for a Decade

SPENDING REVIEW IS 'WORST COUNCIL SETTLEMENT FOR A DECADE'

Local authorities say Chancellor Alistair Darling's announcement of an
extra 2.6 billion pounds in central government grants to English local
authorities over the next three years represents the  worst settlement
councils have received in the last ten years. The Comprehensive Spending
Review foreshadowed a rise in the central grant to almost 26 billion pounds
in 2010-11 - a real terms increase of one per cent a year.

The Chancellor said the increase should mean that local authorities could
keep council tax rises substantially below 5 per cent but the Local
Government Association Chairman, Sir Simon Milton, said the settlement left
a black hole in funding.

"Councils will continue to work hard for the people they serve but they
face tough choices. The Chancellor's announcement will mean above-inflation
rises in bills for council taxpayers and businesses, and there remains a
black hole in funding for the care of the elderly," Sir Simon said.