The average spending power reduction for councils in 2014/15 is expected to be limited to ‘just 2.9% per household’, the Department for Communities and Local Government (DCLG) announced today.
DCLG insisted today’s local government finance settlement was ‘fair to all parts of the country’ and said rural councils would receive an increased grant worth £9.5m to ‘help drive efficiency’.
Communities secretary Eric Pickles said: ‘The coalition Government has tried to be fair to every part of the country – north and south, rural and urban, metropolitan and shire.
‘Unlike the old funding system, which encouraged councils to talk down their local areas to win more funding, the decentralisation of local government finance now puts councils in the driving seat, rewarding them for supporting local enterprise, building more homes and backing local jobs.
‘This year, councils should continue to focus on cutting waste and making sensible savings to protect frontline services and keep council tax down.’
A DCLG spokesman added: ‘Today’s fair funding deal arms councils with a significant average spending power of £2,089 per household.’
