Government hands over just £143,000 extra to councils after cuts crisis talks

Months of lobbying in the region seems to have been in vain as the final local Government settlement amounts to just £20,000 for each council

Newcastle City Council leader Nick Forbes
Newcastle City Council leader Nick Forbes

Months of pressuring the Government to think again on council spending cuts worth more than £210m a year have seen ministers hand out just £143,000 extra for the North East.

Across the region councils have being setting out where the axe will fall, with the next three years likely to see the cuts total rising to more than £800m.

But after months of high level delegations taking part in desperate Whitehall lobbying missions, the coalition Government has increased the budget available to the region’s councils and fire brigade by an average of just £20,000 each.

The total amount for the region’s seven councils and Tyne and Wear Fire and Rescue Service increased from £1,081,128 to £1,081,271, a rise of just 0.013%.

The final spending handout for 2014/15 will mean there is no way for councils to drop plans to axe Sure Start centres, make hundreds of redundancies or force up parking charges.

And plans to close down three fire stations will certainly go ahead after the Government announced the final funding settlement for Tyne and Wear Fire and Rescue will see an increase of just £4,000, despite pleas for extra cash.

The North East has been lobbying against the perceived “unfairness” of the cuts since the coalition began axing budgets in 2010. Those efforts stepped up a gear in the last few months after yet more spending reductions for local government were announced in the autumn.

Included in the lobbying effort was work by the Association of North East Councils, which met with local government minister Brandon Lewis to put the case for a fairer funding settlement.

The extra £143,000 handed over as a result is considerably less than the money handed over each year by the region’s seven local authorities to the Association of North East Councils, with Northumberland alone having handed over more than £98,000 this financial year.

A firefighter douses a flaming tree on Bonfire Night in Byker
A firefighter douses a flaming tree on Bonfire Night in Byker
 

Last night former Newcastle Council leader Lord Beecham said it was clear the coalition was not interested in fairly funding local government in the North.

The peer said: “The Government has completely failed to redress the grossly unfair distribution of grant which hits Newcastle and other less-well off areas and benefits the more affluent.

“The extra we receive in the final settlement amounts to less than 25p per household per year and means that there is no protection from the tidal wave of cuts to services which the Government has launched.”

And Northumberland’s Labour council leader Grant Davey said: “It’s disappointing that, yet again, the coalition have failed to listen to Northumberland and have shaved a minute £18,000 from cuts to services worth £32.5m this year.

“Many would say such a derisory figure is an insult to the residents of the county but it shows how little David Cameron and Nick Clegg think of the North East.

“It’s time our coalition MPs started to stand up for their county rather than sit quiet as Cameron and Clegg ravish the services their constituents rely on.”

Northumberland County Council is the only one in the region to put up council tax next year, rising by 1.99%, the maximum allowed without putting the increase to a local referendum.

The Government has pointed to a grant to freeze council tax in most other areas as one way in which many households will benefit from its funding settlement.

Announcing the final settlement, Mr Lewis said: “This settlement marks the second year of local business rates retention and we have again tried to be fair to all parts of the country whether north, south, rural or urban.

“Given the local flexibilities and freedoms that we have put in place, local councils should now work to support local enterprise, building more homes and backing local jobs, so that they can then invest the rewards of growth in local services and in lower taxes.”

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