Borough remains London's worst funded after poor grant settlement

7.43.00pm GMT Fri 28th Dec 2007

Richmond Council will get below inflation increases in the money it receives from Whitehall over the next three years, the Government has announced.

The latest grant settlement means the borough will remain the worst funded in London and one of the lowest funded anywhere in the country. Careful forward planning by the borough's finance department will protect services in the coming year but the Council continues to call on the Government for a fairer deal.

Commenting on the announcement, Cllr Stephen Knight, Deputy Leader and Cabinet Member for Resources on Richmond Council, said: "Councils are being squeezed from both sides at once. On the one hand the Government continues to make more and more demands and residents quite rightly expect improved services. On the other, successive grant settlements simply do not give councils the money they need. In Richmond upon Thames we have a particular problem. The average council in the UK only has to fund 50 % of its non-school expenditure from council tax. Here the figure is over 80 % because year on year, despite our best efforts, we remain one of the worst funded councils anywhere in the country. There is only so much that can be achieved from greater efficiencies and working smarter. We are already recognised by the Audit Commission as a highly efficient authority, reflected in our 4/4 score for value for money. We are committed to delivering quality services but if the Government does not give our residents a fairer deal, something will have to give."