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HAVERING FLOORED BY CENTRAL GRANT SETTLEMENT

Havering has, once again, received the minimum revenue support grant possible from the government.

The level of central government funding for 2008/09, which forms around 75% of council funding, has increased by just over £1m (2%), the minimum possible, and otherwise known as a floored grant.

Of the 33 London boroughs 27 will receive this minimum increase in grant for 2008/09. Those boroughs not floored are Waltham Forest (+£2.3m), Greenwich (+£3.3m), Redbridge (+£4.6m), Enfield (£5.2m), Barking & Dagenham (+£5.3m) and Newham (+£10.3m).

The Mayor of London has proposed an increase of £7 (2.4%) on the GLA precept for 2008/09.

Cllr Clarence Barrett, Shadow member for resources said: “Another minimum grant from the government will, once again, make the budget setting process for next year very difficult.

“It is interesting to see that the cluster of councils that border Havering are among the few boroughs that have received more favourable settlements, yet we are prominent by our obvious exception.

“The calculations leading to these settlements are very complicated, however we do need a fairer and more transparent way of allocating funding. A recent review on local government funding highlighted a number of proposals, but the government is not willing to grasp the nettle and deal effectively with this contentious issue.

“Whilst the Mayors proposed increase of £7 looks modest, it should be taken in the context of how much it has increased over the last seven years. In 2000/01 the precept stood at £123 (based on band D property) and is £304 this year - that’s an average increase of £25 per year!

“Its rather odd that the lowest annual increase since the formation of the GLA should come a month before the Mayoral and London Assembly elections!”

note:
GLA PRECEPTS SINCE 2000/01

2000/01 £123
2001/02 £151 +22.7%
2002/03 £174 +15.2%
2003/04 £224 +29.1%
2004/05 £241 +7.6%
2005/06 £255 +5.8%
2006/07 £289 +13.3%
2007/08 £304 + 5.2%
2008/09 £311 +2.4% (proposed)

15.12.07