Council needs more grant, says MP                                                                                   

Neil Gerrard, Labour MP for Walthamstow, is pressing Government Ministers to look again at their proposals for grants to local Councils for the next year. Mr Gerrard joined other London MPs at a meeting last week with Nick Raynsford, the Minister responsible for local authority grants.

"I am disappointed at the grant settlement for next year, and the effects it will have on Waltham Forest" said Mr Gerrard. "It will leave Councillors in a very difficult situation, faced with the prospect of significant Council Tax increases and at the same time cuts in services."

"I asked Nick Raynsford to look again at the way in which the costs of services and pay in each area are taken into account in the formula grant distribution. East London Boroughs have done very badly on the calculations used this year. It cannot be right that an area such as Waltham Forest is to receive the minimum possible increase in grant this year, an increase which does not even cover inflation and increased National Insurance contributions."

"The Council has made it clear that they intend to improve those services which have been criticised by Government inspections in recent months, and to make the necessary changes to do this. But an adverse grant settlement such as this will make their task doubly difficult. I hope that we can persuade Ministers to look again and see what additional help they can give to Waltham Forest."

"Since Labour came to power in 1997 local Councils have been given much more to spend. In five years the grant has risen by 25% in real terms, compared with a 7% cut over the last four years of the Tories. It is unfortunate that this year London looks likely to lose out while other parts of the country do better."        

January 2003

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