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Government Cuts Councils Funding

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6:18pm 18th December 2014
(Updated 6:18pm 18th December 2014)

Is Britain facing more cuts?

The government is slashing the money it gives to councils.

On average, local authorities will lose 1.8% of funding from next April.

Cornwall Council is receiving an extra £200 thousand because it is a rural area.

Cabinet Member for Finance and Resources, Adam Paynter, said: "We have only just received confirmation of the overall level of funding which has been allocated to the Council and need to carry out a detailed analysis of the figures to assess what they mean for the authority.

"Our initial analysis, however, suggests that the level of funding allocated to the Council by the Government is very close to the figures predicted in our budget for 2015/2016.

"The Government has recognised Cornwall's stance that providing services in a rural sparse area costs more than in an urban area which has resulted in £200,000 additional funding for the Council. Whilst this is good news it is far less than the additional costs facing Cornwall. We also welcome the fact that the Government has decided to retain the local welfare provision grant which means we will receive £885,000 (a reduction of £250,000 on last year's grant) to help support vulnerable people in Cornwall this year.

"With an expected 33% reduction in Government funding over the next four years the Council will need to find savings of up to £196m by 2018/2019. The budget, which was agreed by the full Council on 25 November, was based on making savings of £58.8m in 2015/2016 with an agreement in principle to increase council tax by 1.97%. The decision to go early with the budget rather than wait until February will help save between £7m and £9m next year.

"As today's announcement only gives us the overall figure for the Council, we need to wait for further details to be announced by the Government over the next few weeks to draw up a full picture of the impact of the settlement on our services.

"We also welcome the Government's decision to maintain the referendum threshold at 2% rather than reduce it to 1%."

6:18pm 18th December 2014

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