---

Spending Review 2010

Answer

We have always been clear that tackling the fiscal deficit is the Government’s main priority and that local authorities must make a contribution to reducing the deficit. We have said for some time that this should not be achieved by salami-slicing budgets but that we expect local authorities to start early to make radical changes, so that they can continue to provide key front-line services with less money. The best councils have already been undertaking major restructuring in areas such as shared services, back office and procurement in readiness for the spending review. The spending review 2010 provides a fair though challenging settlement for local government. It delivers radical reforms with new financial freedoms including the ending of ring-fencing of all revenue grants from 2011-12, except simplified school grants, and a new public health grant from 2013. We have also removed top-down bureaucratic burdens. Local government has the freedom and powers to deliver the key front-line services that people rely on and to make significant savings. The measures that we are taking to deliver transparency about spending decisions and outcomes will help local areas to hold their local authorities to account and ensure that councils cut waste and use funding in the most effective way to deliver local priorities. Decisions on the level and profile of all settlements took into account the needs of public services and affordability within the overall spending envelope. The spending review set out the decisions necessary to deliver the Government’s deficit reduction plan. As a result of the action that the Government are taking, the Office for Budget Responsibility projects that the structural current deficit will be eliminated by 2014-15. Formula grant is only one element of support for councils. Other funding will be provided through specific grants. The full picture for local government will be available once we are in a position to provide further details on the overall spending plans for local authorities. Our aim is to make available as much of this information as possible at the time of the provisional local government finance settlement 2011-12.

Secondary information

Type

Written question

Reference

3574; 722 c392-3WA

Session

2010-12

Subjects

Local government finance Formula grant

Link

View this Written question on www.publications.parliament.uk