Transcript Provisional Local Government Finance Settlement 2013-14
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Funding outlook for London local government
5 March 2013 Jon Rowney: Head of Fair Funding, Performance & Procurement
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“I am keen to move to a radically different system of funding and support for councils that is built on strong incentives, is driven by local decision making and breaks this dependency [on central government grant]…”
Eric Pickles MP – Secretary of State CLG
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Strong Incentives
Business Rates Retention New Homes Bonus Localisation of Council Tax Support Public Health
London Boroughs - Projected income 2010-11 to 2019-20
10,0 9,0 8,0 7,0
£bn
6,0 5,0 4,0 3,0 2,0 1,0 0,0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 *
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Spending Review 2010
Public Sector expenditure £81 billion by 2014/15 Local Government core funding £5.6 billion -19 % in cash terms -28% in real terms Further 0.9% reduction in 2015/16 and 2016/17
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Reflecting on SR 2010
Transparent and Comparable?
Delivery Arm of Central Government The stretching of the 28% ‘Contribution’ Is it closer to 33%?
The Cut to Local Government
2011-12 2012-13 2013-14 2014-15 0% Total -5% -10% -15% -20% -25% -30% -35%
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The changing financial landscape…
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‘the local government settlement is built on the principle of fairness, which means councils that deliver for their communities will make more’.
Local Government Minister Brandon Lewis
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Local Government Finance: Risk, Reward and Competition Can you build more homes?
Is your local economy thriving? Is unemployment dropping?
New Homes Bonus Grant More local business rates Lower council tax support costs Funding Topslice Less local business rates Higher council tax support costs
Pro-growth services are being cut hardest
110
Environmental
100 90 80 70
Cultural Highways and transport Housing
60 50
Planning and development
2009-10 2010-11 2011-12 2012-13