Funding of Local Government

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Conference
2006 Local Government Service Group Conference
Date
24 February 2006
Decision
Carried

Conference notes the financial pressures on Councils in the Northern Region

Expectation for Councils to deliver year on year 2.5% efficiency gains following the Gershon review

Cost of implementing single Status (£90 million in the region to date).

Increased contributions to Local Government Pension funds

Capping of council tax increases by Central Government

Government funding provides up to 80% of local government spending. the Government Rate Support Grant increase for 2006/07 is a low 2%. councils in the Northern Region Received the lowest increase in the country.

Councils are cutting vital services and jobs – 320 jobs in Newcastle; 140 in North Tyneside, 220 in South Tyneside, the closure of residential homes for the elderly in Durham and the closure of libraries in Gateshead.

Northumberland Council is facing cuts of £40 million of the next 3 years and Newcastle £50 million over the next 4.

Conference agrees that we should organise a campaign –

1.to highlight the impact of the Government’s funding regime on jobs and services

2.for an increase in funding to maintain services and jobs

3.work with local councils and the relevant bodies to lobby Government to consider a more appropriate funding mechanism for local government in the region which fully reflects the demographics and social need in the North East