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7 Dec 07Poole's Funding Settlement
Tough budget decisions lie ahead after the Government announced the level of funding it will provide to the Borough for the next three years.
The announcement identifies £26 million that the Government is prepared to contribute to providing services (excluding schools) in Poole in the next financial year through formula funding. This is an increase of just 2% in 2008/09. The grant increase is even lower in future years at 1.8% (2009/10) and 1.5% (2010/11).
The amount of Government grant received by Borough of Poole is the significant factor in determining funding for local services and the levels of Council Tax, which will be set in February next year.
Cllr Brian Leverett, Leader of the Council, said: “Poole is an efficient Council and is always looking for ways to get the best value for every pound of taxpayers’ money. However, the difficult decisions we now face are an inevitable consequence of the Government’s unfair funding formula. Once again, we have been given a below average settlement which means that Poole remains at the bottom of the funding league with a 2% increase. Given that some unitary councils next year are getting increases of over 12% and an average increase of 5%, how can this be fair?”
“The Council has delivered efficiency savings of almost £7 million over the past three years. Continued efforts to tighten controls on budgets, better procurement of services, and a commitment to working more closely with neighbouring authorities and partner agencies will help the Council to identify further efficiencies.
“Due to sound financial management, I am confident we can continue to deliver a high level of local services over the next year, despite increasing pressure on budgets and services. However, this will become an ever more difficult balancing act in the years to come, given the Government proposals for funding council services.”
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