main content Disappointing grant settlement proposed

As predicted, with the exception of schools, the Government’s proposed financial settlement for 2006/7 is once again a very poor deal for Bromley and for London as a whole. For the fourth year running, Bromley will receive only the minimum increase for services other than schools, which for 2006/7 has been set at 2%.

Funding for schools has been transferred into a new ring-fenced government grant and the Council is no longer responsible for determining how much our schools receive.

The increase of only 2% for other services is very bad news for the council taxpayers and people of Bromley. The government has not even funded unavoidable additional costs arising from pay awards and price increases. Details of other government grants for other services are still being released, but it seems likely that the council will suffer a reduction in overall grant for services other than schools. The additional national sum of £305m announced by the Chancellor has fallen a long way short of the £2.2bn funding gap identified by the Local Government Association.

Said Council Leader, Councillor Stephen Carr: “Once again the people of Bromley are being denied their fair share of government money. The system of local government funding is now so confusing that it is impossible for the people of Bromley to understand who is responsible for what and how much they can influence decisions about their lives. What makes it more bizarre is that not a single London borough is now receiving the level of grant that the government thinks it needs. Despite our grant being so poor the Government would actually like to give us £16m less. Try explaining that logic to the people of Bromley.”

ENDS

Notes to Editors: 

• Bromley’s proposed grant for 2006/07 is £56.172m.

For media enquiries, please contact Susie Clark, Communications Officer, on 020 8461 7911, or email susie.clark@bromley.gov.uk or Amanda Day, Communications Officer on 020 8313 4390.