Local government cuts are hitting the most deprived areas hardest - Labour Local Elections Launch

New figures compiled by Labour show that Tory cuts to local government are hitting the North of England and the most deprived areas the hardest.

The figures also show that local authorities’ spending power per household is on course to fall by an average of 23 per cent (£254) between 2010-11 and 2019-20.

The figures have been released on the same day that Ian Lavery MP, Labour Party Chair, is officially launching Labour’s Local Elections campaign for 2019 in Stoke. 

• Poorer areas are set to see falls of 28 per cent on average, compared to a 19 per cent fall for better off parts of the country.  This means that Tory councils areas will see an average fall in spending power per household of £120 while the equivalent cut for Labour councils is more than £539 per household – four times higher than Tory areas.

• The most deprived areas of the country are being hit particularly hard. Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average cut of £254.

• All ten of the top 10 councils set to see the biggest cuts to spending power are Labour councils while six out of 10 of the councils receiving the best settlement over the ten years are Conservative controlled.

• Regionally, London and the North East are set to see a cut over five times that of the South East of England, while the North of England is set to see a cut of over three times what the South of England will see.

Ian Lavery MP, Labour Party Chair, launching Labour’s Local Elections campaign in Stoke is expected to say:

“Local government and the vital public services they provide have been hollowed out by savage Tory cuts that have hit the poorest hardest.

“Decades of neglect combined with 9 years of austerity has led to rising crime, high street decline and the loss of key services.

“The Tories’ cuts to schools, the police and services such as social care, homelessness prevention and children’s services are putting family prosperity and Britain’s future at risk.

“Labour will rebuild our country with investment in services and communities so they can thrive once again, instead of more of the same failed austerity and cuts with the Tories.

“We need to elect as many Labour Councillors as possible on 2 May to send a message to this Government that real change is needed and austerity must end.”

Ends

Notes to editors

1. The analysis relates to the change in spending power per household between 2010-11 and 2019-20. According to the official MHCLG ‘guide to local government finance settlement in England’ spending power is:

“Spending power or revenue spending power is an estimate of the amount of funding available to each authority to spend on their core services. It is made up of estimated council tax and business rate income, Revenue Support Grant and New Homes Bonus plus a number of government grants excluding those for education and policing.”

A guide to the local government finance settlement in England, DCLG, December 2013,https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/266886/LGFS_Guide.pdf

1. These cuts mean local council with face a funding gap of £7.8 billion by 2025.

1. The analysis shows that between 2010 and 2020 Tory areas will have received a far lower reduction in spending power per household in both percentage and cash terms than Labour and the national average.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Biggest cuts in pounds per household - The areas seeing the ten biggest cuts to spending power per household in pounds are all Labour-controlled.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Biggest cuts as a percentage per household - Six out of the 10 areas seeing the biggest cuts to spending power per household in percentage terms are Labour-controlled.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Biggest cuts as a total in pounds - Eight out of the 10 areas seeing the biggest cuts to spending power in total are Labour-controlled.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Smallest cuts in pounds per household- Eight out of the 10 areas seeing the smallest cuts to spending power per household are Conservative-controlled.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Smallest cuts in pounds as a percentage per household - Eight out of the 10 areas seeing the smallest cuts to spending power per household in percentage are Tory-controlled.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. The Tories are hitting the most deprived areas hard. Knowsley, the second most deprived area in the country has received the fourth biggest cuts of any council.

1. Cuts compared to deprivation ratings - Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average cut of £254.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. Regional cuts in pounds per household – London and the North East are set to see a cut over five times that of the South East of England.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1. North vs South cuts – The North of England is set to see a cut of over three times that of the South of England.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020

1.  Authority type - The analysis shows that between 2010 and 2020 Tory areas will have received a far lower reduction in spending power per household in both percentage and cash terms.

Labour party analysis based on House of Commons library research of local authority spending power 2010/11 and DCLG, core spending power, 29 January 2019, https://www.gov.uk/government/publications/core-spending-power-final-local-government-finance-settlement-2019-to-2020