Tory Government ‘battering Birmingham’, claims Labour
COMMUNITIES Secretary James Brokenshire promised a “fairer, more self-sufficient and resilient future for local government” as he confirmed that central government funding for councils will fall once again.
But he was accused by Labour of “battering” Birmingham, as Government figures confirmed funding for city services had been cut by £150 million over five years.
Despite Prime Minister Theresa May’s pledge that her Government is “ending austerity”, delivered at last year’s Conservative conference in Birmingham, the main central grant for local councils will actually fall by £1 billion this year, from £15.5 bil- lion to £14.5 billion. At the same time, residents will pay more council tax, thanks to inflation-busting increases.
Labour MP Liam Byrne (Birmingham Hodge Hill) said: “This battering of our city has to stop and it has to stop now.”
The Government has confirmed its spending plans for councils across the country for the new financial year beginning in April.
Figures published
by
the Ministry for Housing, Communities and Local Government show the main government grant for Birmingham City Council is to fall by £27 million, from £489 million last year to £462 million in 2019-20.
That’s down from £612 million in the 2015-16 financial year, a cut of £150 million over five years. The figure will be higher in real terms because of the effect of inflation. Meanwhile, Birmingham residents are expected to pay £350 million in council tax in 2019-20 – up from £327 million last year and £271 million in 201516.
The authority also receives other government grants, including a £60 million fund to help pay for social care.
But overall, central government funding has fallen while the tax paid by local residents has increased.
Birmingham City Council’s total budget, known as its spending power, is £907 million in 2019-20 -– the same as it was in 2015-16.
But when you take into account the impact of inflation, that amounts to a real-terms cut.
Other local councils have been hit in a similar way.