Tagged: spending power

Cuts have hit the North much harder than the South, study shows

Cuts have hit the region’s town halls nine times harder than wealthy parts of the South, a new analysis shows – despite the North facing much higher care bills.

The study highlights the areas where people suffer most from poor physical and mental health, disability and early death, imposing huge extra costs on local councils.

The worst-hit fifth of 325 authorities includes no fewer than ten North-East areas, a list headed by Middlesbrough which is ranked fourth for “health deprivation and disability”.

Not far behind are Newcastle (13th), Hartlepool (14th), Gateshead (17th), Darlington (20th), Redcar and Cleveland (21st), Sunderland (25th) and County Durham (28th), followed by Stockton-on-Tees (51st) and South Tyneside (65th).

On average, those ten councils have lost £213.04 of their overall ‘spending power’ for every resident since 2010, according to finance chiefs at Newcastle City Council.

Yet, the average loss in the ten areas with the fewest sick and disabled people, and much lower care costs, is calculated at just £23.19 per head – more than nine times less.

Incredibly, spending power has actually risen at one authority, Elmbridge, in Surrey (up £8.14 per head) – while it has plummeted in Middlesbrough (down £289.02).

The gulf is seen as crucial because social care is the biggest financial burden for cash-strapped councils, which are now also responsible for public health.

Recently, the charity Age UK warned that older people have been left “high and dry” by council cutbacks to help with washing and dressing, to day care places and meals on wheels services.

Hilary Benn, Labour’s local government spokesman, condemned the much-bigger cuts in areas with the biggest ill-health and disability burdens as “deeply irresponsible and unfair”.

 And he said:
“The A&E crisis in our NHS, driven in part by insufficient social care provision where it is needed, shows that the Tories can’t be trusted with vitally important health and social care services.”

Councils hit by the biggest cuts are already known to have slashed spending on adult social care by 12.7 per cent on average – against just 1.2 per cent in more protected authorities.

 But Kris Hopkins, the local government minister, said
“We have been fair to all parts of the country – rural and urban, shire and city, north and south, with deprived areas continuing to receive the highest government grants.”

Labour has promised a new “fairer formula” for distributing local authority grants, but has yet to give details, or say when this would be introduced.

The ‘spending power’ measure bundles together grants, council tax, business rates and the New Homes Bonus, but is widely criticised for disguising the true scale of the pain.

Newcastle’s finance department calculated the changes since the 2010 general election, after the Government refused to produce official figures.

Source –  Northern Echo,  14 Feb 2015

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Teesside councils suffer worse than average spending cuts in latest government settlement

Teesside councils have again suffered worse than average cuts in the latest government funding announcement.

Figures released today show Middlesbrough Council‘s ‘spending power‘ – the total amount it has at its disposal through central grants and council tax – will fall by £8.9m from £158.4mm in 2014-15 to £149.5m in 2015-16.

That is a cut of 5.6% – compared to an average cut for all English councils of 1.8%.

Redcar and Cleveland will lose £5.2m, or 3.7%, while Stockton emerged relatively unscathed – down £3.6m, or 2.1%.

The list of worst-hit areas is dominated by Labour-dominated parts of the Midlands and North.

> Well, what a suprise !

Tamworth in Staffordshire faces the biggest cut, of 6.4%, followed by Barrow in Furness and Chesterfield.

At the other end of the scale, a number of councils in the South of England will actually see their spending power go up.

Tewkesbury will see the biggest increase, of 3.2%, while Surrey will get an extra £27m, or 3.1%.

Other towns and counties getting an increase include East Devon (up 2.7%), Buckinghamshire (up 2.3%), Cambridge (up 2.3%), Dorset (up 1.9%) and Cheshire East (up 1.4%).

Source –  Middlesbrough Evening Gazette, 18 Dec 2014

Sunderland City Council to lose £12million from Government

Sunderland City Council is to lose more than £12million in spending power for next year, it has been announced.

The Department for Communities and Local Government said in a statement that the authority’s funding grants settlement for 2015/16 will fall by 4.2 per cent, from £289.179million to £276.936million.

Councils across the country are facing an average cut of 1.8 per cent.

It means that spending per Sunderland household will be down from £2,297 to just £2,200.

Source – Sunderland Echo,  18 Dec 2014