Derby City Council

“Labour Govt demand £39m savings from Derby City Council”

In the latest literature from the Derby Labour Party:

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It mentions in bold, after the statement, about the £116m that “They ( Tory Govt) have now demanded a further cut of £45m.”

In 2015/16 the total Council funding was £228m ( inc. £45m for the Central Government Grant [Revenue Support Grant] 20%) – the remaining 80% is Business rates ( from local Derby businesses), Council Tax ( from Derby residents) and Specific grants for Public Health, from central government ( which is constant year on year).

It is absolutely true that the Revenue Support Grant is being cut, but is only 20% of the total funding for the Council. It is not “most” of the funding as this leaflet suggests.

In 2018/19 the plan, and it is only a plan, is that the total funding will be £215m ( £13m less) with the Revenue Support Grant at £19m.(£26m less). This might sound like a significant cut however, plans tend to be very pessmistic. 3 years ago, the plan for 2015/16 was £206m – it was actually £228m (£22m higher than plan).

The point being that statements about future cuts are pure speculation – the fact is that the Government confirm the funding year by year, only. To suggest that the Government is “demanding” cuts is disingenuous.

But to put all this in context, let’s go back to February 2010, just before the election of the Tory Government, and the Council Budget presentation for 2010/11. This planned for £39m cuts over 3 years. – was that “demanded by the Labour Government”? ( Very similar to what is planned for the next 3 years).

Feb2010 extract

The total budget was £215m, in 2010/11 and by 2012/13 after the £39m savings, the budget was still £215m…..and  in 2015/16 £228m. A conclusion could be that the savings described here are the normal business of year on year cost inflation containment…which for most businesses is standard practice.

Something to ponder on?

 

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