Government Grants Rise of Pounds 2.6bn Aiming to Keep Tax Rises Below 5 Per Cent ; Councils

Summary

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Chancellor Alistair Darling announced a pounds 2.6 billion rise in grants to English local authorities over the next three years, which he said would be enough to keep council tax hikes "substantially" below five per cent.

The Comprehensive Spending Review foresees an increase in central grant to almost pounds 26 billion in 2010/11 - a real terms increase of one per cent a year. But the country's senior councillor said it was the worst settlement local authorities had received for a decade, warning it would mean above-inflation rises in council tax and leave a black hole in funding for care of the elderly.

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Government Grants Rise of Pounds 2.6bn Aiming to Keep Tax Rises Below 5 Per Cent ; Councils

A new pounds 150 million fund will support reforms to provide better value for mo...

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