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29/01/2004
£3.7bn in extra funding awarded to local councils
Local services will get an extra £3.7 billion in this year's funding grants to councils, it has been announced today.
For the second year running, every local authority will receive at least an above inflation increase in government grant with many getting more. The local government formula grant will rise by 5.5% to £2.4 billion, with specific grants taking the overall increase to £3.7 billion or 7.3%.
The final report published today comes after a consultation period with local government following the Provisional Revenue Support Grant for 2004/05 announcement in November, and the Chancellor's Pre-Budget Report announcement in December of an extra £340 million of grant for English local authorities.
Local Government Minister Nick Raynsford said: "This year's grant to councils is a substantial investment which will further help councils to deliver improvements in the services they provide while keeping to reasonable council tax increases.
"Given this significant extra investment and the scope for efficiency improvements, our view is that local authorities can and should deliver council tax increases next year in low single figures. I hope we do not have to cap authorities. But make no mistake; we are prepared to use our capping powers on any authority if that proves necessary."
(gmcg)
For the second year running, every local authority will receive at least an above inflation increase in government grant with many getting more. The local government formula grant will rise by 5.5% to £2.4 billion, with specific grants taking the overall increase to £3.7 billion or 7.3%.
The final report published today comes after a consultation period with local government following the Provisional Revenue Support Grant for 2004/05 announcement in November, and the Chancellor's Pre-Budget Report announcement in December of an extra £340 million of grant for English local authorities.
Local Government Minister Nick Raynsford said: "This year's grant to councils is a substantial investment which will further help councils to deliver improvements in the services they provide while keeping to reasonable council tax increases.
"Given this significant extra investment and the scope for efficiency improvements, our view is that local authorities can and should deliver council tax increases next year in low single figures. I hope we do not have to cap authorities. But make no mistake; we are prepared to use our capping powers on any authority if that proves necessary."
(gmcg)
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