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Local Authority Funding (Derby)

Volume 561: debated on Wednesday 24 April 2013

The Petition of citizens of the United Kingdom,

Declares that they believe there has been a disproportionate impact of the Government’s austerity programme on Derby compared to other local authority areas and that the cumulative impact of the cuts being forced on Derby City Council will amount £75.77 per person compared to a few pounds in other more affluent parts of the country.

The Petitioners therefore request that the House of Commons urges the Secretary of State for Communities and Local Government to ensure a fair deal for Derby by reducing the amount of cuts made to Derby City Council.

And the Petitioners remain, etc.—[Presented by Chris Williamson, Official Report, 28 November 2012; Vol. 554, c. 342 .]


Observations from the Secretary of State for Communities and Local Government:

Local government accounts for around a quarter of all public spending so it is only right that councils, including Derby, play their part in paying off the deficit left by the last Administration. Indeed, the last Administration’s March 2010 Budget was planning £52 billion of cuts over the Spending Review period—which would have included local government, which was not a protected area.

The Government have delivered a fair local government finance settlement for 2013-14, fair to north and south, fair to rural and urban, fair to shires and metropolitan areas.

Derby still has a spending power (including Public Health Grant) in 2013-14 of £849 per head, which is over £140 more per head than the £706 in Wokingham.

The petition dates from before the announcement of the 2013-14 local government settlement but even in 2012-13 Derby still had a formula grant (including police) allocation of £545 per head, which was higher than the England average of £525 per head.

This Government have also taken action to work with local councils to freeze council tax. Under the last Administration, council tax bills in Derby rose by 102%. In the last three years, council tax bills have only risen by 1.5%—a significant cut in real terms.

This is a fair deal for Derby’s local taxpayers.