We’ve posted on Coalition cuts to Local Government budgets before. But we make no apology for doing so again. These savage cuts are affecting all our lives – and are set to have an even bigger impact in the coming years.

The Leader of Leeds City Council Councillor Keith Wakefield has again called on the government to address the “widening north-south divide” as it was revealed the council could see its government grant funding cut by a further £65million by 2016.image_gallery

The national spending review last month confirmed a further reduction in local government funding, which in cash terms is projected to mean government grants for Leeds being cut by £36.2m in 2014-15 and a further £28.7m the following year.

These predicted cuts are for basic grant funding alone, with the overall savings figures needed each year likely to be much higher when rising costs and increasing need for council services are factored in.

The figures will be discussed by the council’s executive board at its meeting at Civic Hall on Wednesday 17 July.

These additional reductions will follow a three-year period which will have seen Leeds City Council, the second-largest local authority in England, make savings of £200m due to grant cuts and cost pressures by March 2014.

As we’ve pointed lout before, the impact of such reductions and how they compare to London and the South East were highlighted in a report produced by the Special Interest Group of Metropolitan Authorities (SIGOMA) last month.

While the rest of the English regions have had their resources cut by £4.5billion in the last three years, London and the South East have seen their budgets rise by £235m in the same period.

As Councillor Keith Wakefield said:

“People are now beginning to see the real impact of these cuts, with the gap between affluent and lesser well-off areas broadening, and especially between the north and south where the divide seems to be getting much wider not narrower.”

The Local Government Yorkshire and Humber (LGYH) partnership last month expressed its concern that the impact of freezing council tax, the New Homes Bonus and the new system of business rate collections for local councils also benefitted more affluent areas due to higher-value housing markets and stronger local economies.[see our previous post on ‘Council Funding changes’.]

Leeds City Council is currently analysing the full detail of the national spending review and what it means for its budgets, with a further report to be produced in September.

Councillor Wakefield added:

“We are currently looking through the figures but we already know the outcome is going to be even more painful and difficult decisions ahead. People will rightly be asking questions about how budgets have actually been increasing in certain areas of the country while others have been asked to make massive savings with more to follow. That does not seem fair and I call on the government to look again at the real impact their austerity measures are having.”


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