Councils fear funding loss from falling populations

3 Oct 02
Local authorities are questioning the 2001 census data published this week after they showed population drops that could knock millions of pounds off their government grants.

04 October 2002

London boroughs are leading the chorus of criticism. Westminster and Kensington and Chelsea have demanded that the Office for National Statistics, which calculated the data, re-examines its figures.

According to the data, published on September 30, Westminster's population is 181,000, up 6,000 on the 1991 census. But last year the ONS estimated it to be 245,000. Kensington's population is reported to be 159,000. Last year the ONS said it was 190,000.

Both say they stand to lose tens of millions of pounds from their Standard Spending Assessment, which will continue to use population as one of the main elements of the formula even after it is reformed.

Merrick Cockell, Kensington's leader, warned that 'another A-levels fiasco' was looming. He blamed the formula used by the ONS to extrapolate a total population figure from census responses.

'The ONS says only 64% of our population responded and that it used a formula to create the rest,' he said. 'Something has gone badly wrong and the ONS should review its first results immediately.'

Westminster deputy leader Kit Malthouse said the results were a 'statistical travesty'.

He added: 'We know from the increasing pressure on social services and education that population is increasing.'

The populations of a further 30 authorities have fallen by more than 5% since last year's ONS figures. Westminster said it would contact them all shortly and is also demanding an urgent meeting with the government.

An ONS spokeswoman said it rejected the authorities' claims. 'We are confident that the census data is correct.'

PFoct2002

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