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Council budgets slashed more in poorest areas, says Labour (26 August 2014)

Date: 26/08/2014
Duncan Lewis, Housing Solicitors, Council budgets slashed more in poorest areas, says Labour

Labour Shadow Communities Secretary Hilary Benn has attacked the Coalition government for creating a postcode lottery of council budget cuts.

Mr Benn says that under the Coalition government, councils in low-income areas of England have suffered greater cuts in their budgets, while local councils in wealthier areas have had budget cuts up to 16 times smaller than their low-income counterparts.

This means that some of the poorest households in England have endured council budget cuts worth up to 16 times more per household, compared with households in wealthier areas.

The Guardian reports that the figures compiled by Mr Benn are based on the amount per household that councils lost in the year 2010 to 2011 and will lose in the year 2015 to 2016.

The Shadow Communities Secretary says that councils covering the 10 most deprived areas of England – which are measured according to the index of multiple deprivation – have lost an average of £782 per household.

However, in wealthier areas, Local Authorities have lost £48 per household on average.

Mr Benn released the figures during the Labour Party’s summer campaign to help voters decide between Labour and the Conservatives.

Writing in an open letter to council leaders, he said:
“As we will inherit – and stick to – the government's spending plans for 2015-16, we will not have any more money to give to local government.

"But there will be one difference: the money we have will be distributed more fairly.”

A spokesman for the Department for Communities responded by attacking Labour's local government record.

Local government minister Kris Hopkins said:

“Under Labour, council tax bills more than doubled, while local services like bin collections halved.

Mr Hopkins went on to say that Labour leader Ed Miliband “would hike up” taxes on people's homes.

“…in Wales, the Labour government are now actively supporting monthly bin collections,” he said.

“It's clear under Labour, you pay more and get less.”
Mr Hopkins also points out that, while local government accounts for one-quarter of public spending in the UK, this spending was “strangled in red tape by Labour” – whom he accuses of “turning a blind eye” to massive waste and inefficiency in the public sector , as well as running up massive public debts.

“Councils need to do their bit to help pay off the deficit that Labour left,” said Mr Hopkins.

“…Councils can save money through more joint working, better procurement and cutting fraud,” he added.

Mr Benn said, however, that the Coalition government had “failed to apply the basic principle of fairness” when imposing budget cuts on councils.

“The prime minister and the local government secretary say that tough times involve tough choices – but they have forgotten one very important principle: tough times demand tough choices that are fair,” said Mr Benn.

“And yet if we look at the way in which the Tory-led government has chosen to take most from those who have least – the most deprived Local Authorities – it is clear just how unfair and unjustifiable this is.”

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