In late December whilst attention was focused on Brexit the Government proposed to change the way it gives funding to councils. Instead of focusing on the most deprived areas or those with the most need they’ll introduce new funding models predominantly aiding more affluent Tory areas.

This at a time when the Government should be reinvesting in our most at need areas not cutting them ever more to the bone. Tory cuts to local government are hitting Labour areas and the most deprived councils hardest, according to new Labour Party analysis.

Local authorities’ spending power per household is on course to fall by an average of 23 per cent (£243) between 2010-11 and 2019-20. But Labour councils are set to see falls of 28 per cent on average, compared to a 19 per cent fall for Tory councils.

This means that while Tory councils will see an average fall in spending power per household of £115 the equivalent cut for Labour councils is more than £500 per household – more than four times higher than Tory areas.

The nine of the top 10 councils set to see the biggest cuts to spending power are Labour councils while eight out of 10 of the councils receiving the best settlement over the ten years are Conservative-controlled.

In addition, the most deprived areas of the country are being hit particularly hard. Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average cut of £255.

Tameside Council’s spending power is £543.56 lower per household next year than it was in 2010, and Stockport Council’s is £317.73 lower.

Andrew Gwynne MP, Labour’s Shadow Secretary of State for Communities and Local Government, said:

“Local government is under enormous pressure because of politically motivated Tory cuts that hit the poorest hardest and it’s set to get worse. Ordinary families are paying the price as councils are forced to cut services to fill the gap.

 

“The Tories won’t stand up for working people. They are putting family prosperity and Britain’s future at risk.

 

“The Tories must change their plans and prioritise funding for the most deprived council areas. It’s totally unfair that places like Denton and Reddish has been clobbered so hard given the very real health inequalities and pockets of real social need that exist in this constituency.”

 

ENDS

Notes to editors

1. On the 13th December 2018, the Ministry of Housing, Communities & Local Government released a consultation proposing changes to local government funding.

MHCLG, 13 December 2018, https://www.gov.uk/government/consultations/review-of-local-authorities-relative-needs-and-resources

2. The recommendations include proposals that would mean the amount of money given to councils would no longer reflect levels of “poverty and deprivation” in those councils

‘grant allocations should no longer be weighted to reflect the higher costs of poverty and deprivation’
Guardian, 20 January 2019, https://www.theguardian.com/society/2019/jan/20/ministry-of-housing-plans-to-redirect-inner-city-funds-to-tory-shires-branded-stitch-up

3. Labour has analysed the Government’s own figures on spending power from the provisional local government settlement review. The analysis relates to the change in spending power per household between 2010-11 and 2019-20. According to the official MHCLG ‘guide to local government finance settlement in England’ spending power is:

“Spending power or revenue spending power is an estimate of the amount of funding available to each authority to spend on their core services. It is made up of estimated council tax and business rate income, Revenue Support Grant and New Homes Bonus plus a number of government grants excluding those for education and policing.”
A guide to the local government finance settlement in England, DCLG, December 2013, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/266886/LGFS_Guide.pdf

4. The analysis shows that between 2010 and 2020 Tory areas will have received a far lower reduction in spending power per household in both percentage and cash terms.

Control
Average change in spending power per household 2010/11 to 2019/20 (%)
Average change in spending power per household 2010/11 to 2019/20 (£)
Conservative
-17.98%
-£114.93
Labour
-27.82%
-£506.27
Lib Dem
-25.12%
-£126.03
Total average
-21.31%
-£243.38

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and MCLG, provisional core spending power, 13 December 2018, https://www.gov.uk/government/publications/core-spending-power-provisional-local-government-finance-settlement-2019-to-2020

5. Biggest cuts in pounds per household – The nine out of ten of the areas seeing the biggest cuts to spending power per household in pounds are all Labour-controlled.

Rank
Council
Political control
Change in spending power per household 2010/11 to 2019/20 in £
1
Hackney
Labour
-1406.11
2
Newham
Labour
-1301.76
3
Tower Hamlets
No overall control
-1264.31
4
Knowsley
Labour
-1057.06
5
Southwark
Labour
-1014.02
6
Islington
Labour
-1013.63
7
Camden
Labour
-958.37
8
Haringey
Labour
-949.05
9
Hammersmith and Fulham
Labour
-942.04
10
Hackney
Labour
-1406.11

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and MCLG, provisional core spending power, 13 December 2018: https://www.gov.uk/government/publications/core-spending-power-provisional-local-government-finance-settlement-2019-to-2020

6. Smallest cuts in pounds per household- seven out of the 10 areas seeing the smallest cuts to spending power per household are Conservative-controlled.

Rank
Council
Political control
Change in spending power per household 2010/11 to 2019/20 in £
1
Isles of Scilly
Independent
336.78
2
Wokingham
Conservative
39.31
3
Horsham
Conservative
15.68
4
Hart
No overall control
8.87
5
Uttlesford
Conservative
7.66
6
Stratford-on-Avon
Conservative
7.45
7
Tonbridge and Malling
Conservative
4.18
8
Vale of White Horse
Conservative
-4.12
9
Tewkesbury
Conservative
-5.31
10
Maidstone
No overall control
-6.78

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and MCLG, provisional core spending power, 13 December 2018:  https://www.gov.uk/government/publications/core-spending-power-provisional-local-government-finance-settlement-2019-to-2020

7. Smallest cuts in pounds as a percentage per household – Nine out of the 10 areas seeing the smallest cuts to spending power per household in percentage are Tory-controlled.

Rank
Council
Political control
Change in spending power per household 2010/11 to 2019/20
1
Isles of Scilly
Independent
7.48%
2
Horsham
Conservative
2.81%
3
Stratford-on-Avon
Conservative
-2.02%
4
Surrey
Conservative
-2.28%
5
Hart
No overall control
-2.41%
6
Uttlesford
Conservative
-2.60%
7
Tonbridge and Malling
Conservative
-5.21%
8
Dorset
Conservative
-5.27%
9
Wokingham
Conservative
-5.89%
10
Mid Sussex
Conservative
-6.35%

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and MCLG, provisional core spending power, 13 December 2018, https://www.gov.uk/government/publications/core-spending-power-provisional-local-government-finance-settlement-2019-to-2020

8. The Tories are hitting the most deprived areas hard. Knowsley, the second most deprived area in the country has received the fourth biggest cuts of any council.

9. Cuts compared to deprivation ratings – Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average cut of £243.

Deprivation rank
Council
Change in spending power per household 2010/11 to 2019/20 in £
1
Blackpool
-680.24
2
Knowsley
-1057.06
3
Kingston upon Hull
-709.79
4
Liverpool
-923.93
5
Manchester
-902.05
6
Middlesbrough
-804.57
7
Birmingham
-928.05
8
Nottingham
-742.39
9
Burnley
-237.64
10
Tower Hamlets
-1264.31

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and MCLG, provisional core spending power, 13 December 2018, https://www.gov.uk/government/publications/core-spending-power-provisional-local-government-finance-settlement-2019-to-2020

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