Deprived communities hit hardest by council cuts, says Labour

8 Apr 16
Many of the most deprived areas in the country face local authority budget reductions of more than three times the national average, according to an analysis of council cuts.

The figures, published by the Labour party as part of its local election campaign, looks both at cuts implemented since 2011/12 and those planned to 2019/20. It found that eight of the ten most deprived councils in the country have seen spending power per household cuts of more than three times the national average cut of £169.

Based on reductions in spending power per household, these areas include Liverpool, Manchester, Middlesbrough, Birmingham, and Tower Hamlets.

Spending power per household is on course to fall by an average of 16% or £169 in cash terms between 2011/12 and 2019/20.

But Labour councils face a 21% fall on average, compared to a 13% for Conservative councils, 18% for independently-run councils, 17% for those that are in Liberal Democrat control, and 13% for those in no overall control.

The areas seeing the 10 biggest cuts to spending power per household are all Labour-controlled, shadow local government secretary Jon Trickett highlighted. Councils were under enormous pressure because of what he called “politically motivated Tory cuts”.

He said: “Ordinary families are paying the price as councils are forced to cut services to fill the gap. We need to elect as many Labour councillors as possible to stand up against these unfair Tory cuts.”

Responding to Trickett, a Conservative Party spokesman said: “As we continue to deal with Labour’s debt our long-term funding settlement for councils is fair, and ensures those facing the highest demand for services continue to receive more funding and have higher spending power than less deprived authorities.

“Average spending power per dwelling for the 10% most deprived authorities is around 23% more than for the least deprived 10% in 2016/17.” Changes to local government funding including the introduction of business rates retention also make it impossible to compare spending power over the period.

According to Labour’s analysis, Knowsley, the second most deprived council area in the country has received the biggest cut of any council. The cuts being made to the top 10 most deprived areas are:

Deprivation rankCouncilChange in spending power per household 2011/12 to 2019/20
3Kingston upon Hull-£535.56
10Tower Hamlets-£585.29


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