16 January 2004
Cambridgeshire County Council is warning of a 10% hike in its council tax if the government forces it to fully passport funding to schools, despite meeting ministers' minimum spending targets.
The Conservative-led authority, which is being backed by the Local Government Association, said it would consult residents before deciding whether to appeal against Education Secretary Charles Clarke's direction to passport 100% of education funding. The county proposes to pass on 71%.
The council is arguing that schools funding in the county would increase from £219m to £230m in 2004/05 under its plans. It would spend its Formula Spending Share for education and would meet the government's minimum 4% funding increase per pupil. Council tax would also be kept to 6%.
Cambridgeshire claimed that the government's system of ceilings, which prevents councils from gaining more than 7.5% in total grant, had lost it £11m.
A spokesman for the council said discussions had been ongoing with Department for Education and Skills officials and that it felt aggrieved by this decision.
Council leader Keith Walters said: 'The government has spent the past few weeks telling authorities to keep council tax levels to a minimum. Our proposed 6% increase does just that.'
A spokesman for the LGA said that in previous years councils hit by the ceiling had been allowed to adjust their passporting levels and they expected the DfES to stick to this.
Clarke, however, did let three other non-passporters off the hook. Halton in Cheshire and South Tyneside – which have promised to pass on funding fully in 2005/06 – and Bath and North East Somerset LEA.
The government has been anxious to avoid the bitter row that hung over education funding last year, granting £120m in transitional funding. But up to six authorities will have to passport their entire grant increase, making the prospect of high council tax rises likely.
Clarke said: 'I am sorry that four authorities have decided not to passport in full. I have considered carefully the explanation put forward by each of these authorities before deciding to use my powers.
'I have decided that I should act to ensure a minimum level of schools budget in Cambridgeshire.'
PFjan2004
