Labour Government cuts funding for Greenwich in real terms

At last night’s Overview and Scrutiny Committee meeting, Greenwich’s Finance Officer outlined the three year local finance settlement for Greenwich – this is the amount of money which central government gives to the Council – which was announced last week. The facts of the situation are as follows:-

2007/08

2008/09

2009/10

2010/11

Monetary Value of increase

£156.2m

£159.5m

£162.9m

£166.7m

Greenwich Grant Increase

 

2.08%

2.16%

2.31%

National Grant Increase

 

3.6%

2.8%

2.6%

 

In addition, there are still £304m of grants for other items which have yet to be fully announced (and which may have a serious impact on overall funding levels).

It appears that although Greenwich has received increases in its funding below the rate of inflation (currently 3.1% on the RPIX measure) it has done relatively well compared to other Inner London boroughs who are receiving grant increases of 2% next year, declining to 1.6% in 2010/11.

Leader of the Conservative Council Group Spencer Drury said “The Government has again failed to acknowledge the pressures on Greenwich's front line services. This announcement confirms that the Labour Government is pressing this Council to either cut services and/or raise Council Tax. Greenwich is undertaking a programme of £24m of cuts simply to try and make ends meet – Labour nationally is hitting local government once again.”

Spencer added “A Conservative Council in Greenwich would look to reduce spending on Labour’s bloated publicity spending of £3.2m, which has risen by 330% over ten years and would not renew the Council’s spending on a corporate box at the O2.”