Local Government savings in full

Details of local government's £1.166bn contribution to the £6.2bn emergency savings in have been unveiled by communities secretary, Eric Pickles.

No local authority will face reductions in their revenue grant of more than two percent.

The £29bn general grant, the main source of funding that local government receives every year, is not being reduced - with the aim of ensuring that key frontline services can be protected and prevent council tax rises.

A reduction in revenue and capital non-schools ring-fencing this year from 10.7% (£4.5bn) to only 7.7% (£3.2bn) is seen as a first step to giving councils more freedom over spending decisions. Meanwhile, a major scaling back of quangos puts local government centre stage in meeting the needs of local residents.

At the same time as 'reducing the management burden of authorities and giving councils the extra flexibility they need to concentrate on local priorities and protect the frontline' the announcement confirms that by January 2011 all councils will be publishing online details of their spending over £500.

Said Mr Pickles, "The nation's deficit is running at £156bn. Reducing that deficit, putting the finances back on a stable footing and continuing to ensure economic recovery is the most urgent issue facing Britain. Tough fiscal times will be challenging for all, but the reductions have been made to reflect the Government's policy of decentralisation and a scaling back of the quango state.

"The detailed spending decisions outlined today show a clear determination to make the necessary savings whilst minimising the impact on essential frontline services like rubbish collections and protecting spending on schools and Sure Start. We have focused attention on reducing the centre and it is here that the reductions are the hardest."

The £6.2bn savings programme represents the first step in governmental efforts to balance the books by tackling an historic £156bn deficit.

Government's focus has been on driving out 'Whitehall waste' with the brunt of the cuts being borne at the centre. However, communities and local government has been asked to find £780m savings in 2010/11. Departmental and Arms Length Body running costs are therefore being reduced by 10%.

The need for speed in tackling the deficit has led to government departments making 'difficult decisions about reducing grants to local government'. Shielding the frontline has underpinned decisions on where savings can be found, says the department of communities and local government.

Full details: http://www.communities.gov.uk/news/newsroom/1611369

Source: www.ukauthority.com