Provisional Finance Settlement 2011-12 and 2012-13

Press Release

15 December 2010

In common with councils across the country Melton Borough Council has been informed of its Formula Grant for the next two financial years.  The Formula Grant is the main grant the Council receives from central government and provides funding for nearly 60% of the councils net expenditure.

For 2011/12 the announcement shows a reduction of 15.8% in this grant which for Melton equates to £567K with a further reduction of 12.5% in 2012/13.  This is much greater than was indicated by the Government in the comprehensive spending review.

The reduction for Melton is similar to that being faced by other rural district councils across the country.  Melton is  one of the worse hit being 151 out of the 201 authorities.  The reduction is also much larger than central government is publicising.  Announcements were that the highest fall would be 8.9% but this figure is focused on a new concept called “spending power” within the whole borough including parish spend, which Melton Borough Council does not receive, as opposed to the real reduction in grant.

Lynn Aisbett, Chief Executive said.

‘Whilst the 15.8% reduction is a substantial loss of resources for the authority, the Council has already made significant progress in identifying savings though efficiencies and reducing management costs with more initiatives due to be implemented. However due to the significance of the reduction over the two years it is likely that even more savings will have to be made. The current “Have Your Say”  consultation exercise is going to prove even more valuable in the information it provides and will assist in deciding where cuts and savings can be made.’

The “Have your say” consultation is open until the 31.12.10 and can be accessed at http://www.melton.gov.uk/ or telephone 01664 502502 to request a hard copy.

The Leader of the Council Malise Graham has said

 “The settlement we received from the Government was very near our worst case forecast. We foresaw and prepared for the fact that the previous Government's mismanagement of our economy would have to be paid for and that it would be painful. Those who criticised our decision to build an externally funded new office, that was cost effective, efficient and that we could share with partners, will now begin to realise why that decision was made.

We can manage the 15% reduction in our grant this year and will start work early on the 2012/13 reduction of another 13% but it is clear that the level of spending reduction that we are going to have to make, goes way beyond any conventional efficiency drive.”

~ends~

For more information please contact:

Sarah-Jane O’Connor

01664 502502