‘I Am Calling For A Thorough Review Of The Way Government Grants To Councils Have Been Distributed- I Have Always Wanted A Fair Funding Review’-Margaret Mullane MP.

The Member of Parliament for Dagenham and Rainham, Margaret Mullane MP today writes her column in the Havering Daily.

I called for a thorough review of the way government grants to councils was distributed. Basically, I wanted a fair funding review,

Why that happened during those years of Conservative Government is simply explained by the massive cuts in the grants to local councils across England. For a Havering resident living in a Band D home, Council Tax was £577 higher for the last year of the Conservative Government in 2023/24 than it was in the last year of the previous LabourGovernment in 2009/10, that’s an almost 40% hike in the bill. During that same period Barking and Dagenham Council experienced a crushing £79 million real terms cut in its annual grant from the Tory Government, grant which went towards funding public services in the borough and helped to hold down Council Tax for residents.

Just to make clear what this level of cuts meant in addition to above levels of inflation increases in Council Tax for residents; in Havering libraries have closed, poorer maintenance of roads and footpaths, escalating car parking charges and reduced support for hard working local charities. Beyond all that, the Tory government’s treatment of Havering brought the borough to the very brink of bankruptcy – only saved by a staggering loan facility of almost £130 million.

You would be excused for asking ‘what’s going on’. Basically two things happened. First, the Tories inflicted a decade of austerity on public services but also they decided to shift grant funding to councils away from areas of need, mostly large towns and cities, and distribute it to more affluent areas. Indeed, Rishi Sunak boasted about this to his Tory supporters.

Together with other Labour MPs following last year’s General Election, I called for a thorough review of the way government grants to councils was distributed. Basically, I wanted a fair funding review, that takes proper account of population movements and relative needs of local areas and am really pleased to say this is now happening. The provisional outcome of this review is now out for consultation with councils with the finalized allocations to be announced in early December. This will be positive news for Havering and Barking and Dagenham, with indicative increases in government grant rising to approximately £45 million and £18 million respectively. Further, councils will get a three yearsettlement – something local government has been calling for to better allow councils to plan services and budgets.

Will this repair all the damage inflicted over the 14 years of savage cuts, no, but it’s a good start to rebuilding council services and local democracy.

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