Tory cuts would mean £240m less for councils - Blears

24^th January 2009

North West MP Hazel Blears, Labour's Secretary of State for Communities and Local Government, wrote today to Caroline Spelman to ask her to clarify the Conservatives' position on council tax.

David Cameron's commitment to cut £5bn from public expenditure included a new policy to restrict the growth of the budget of Communities and Local Government - to a one per cent real terms increase for 2009/10.

This policy would mean cutting £240 million from the Formula Grant paid to local government this year.

The cut of £240 million in council funding would inevitably mean that councils, in turn, need to cut local services or increase council tax bills by an extra one per cent to pay for the missing millions.

Hazel Blears MP said:

"Labour is committed to the proper funding of local councils. In our first decade in office, support to local government rose by 39 per cent above inflation and now by an extra £8.9 billion through this current three-year settlement, the second year of which we are confirming today.

"The Tories on the other hand have announced that if they were in office they would make £5bn of cuts to public spending including a £240 million reduction in the money to councils, meaning either local cuts or a one per cent increase in council tax."

Ends

Editor's notes:
1. To read the full text of the letter please click here.
 
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