Tuesday, 25 May 2010

Spending Cuts – what does it mean for local government?

Yesterday the government announced £6.2bn of spending cuts to be made in this financial year with £1.165bn coming from local government.

Some of the cuts will be in the Department of Communities and Local Government (DCLG) budget. The rest of the local government cuts are being made to specific and general grants that partly come from other government departments. Some of the funding streams that form Area Based Grant will be cut too. The breakdowon of the local government cuts is

  • Department for Communities & Local Government £362m – includes cut of £150m in PFI grant and cut in grant to Audit Commission
  • Treasury (via DCLG) £175m  
  • Department for Transport £309m
  • Department for Education £311m (from Connexions; Positive Action for Young People; Education Transport Grants)
  • Department for Environment Food & Rural Affairs £8m


DCLG still cannot confirm which grants yet and say they are going to consult the LGA. Grim reading.


Hard pressed council staff have now got more uncertainty to contend with.


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