Councils criticise grant increase

The government said the increases were tight but fair

A Devon council says it is disappointed that it is getting a lower increase in its government funding than other local authorities in the county.

Plymouth's unitary council will see its grant go up by 2.8% next year, while Torbay Council and Devon County Council will get increases of more than 5%.

However, Devon County Council said it is was disappointed with its 5.3% rise.

It said it would amount to £40 less per person compared to similar-sized councils elsewhere in England.

It amounts to £30m less funding for public services across the county Brian Greenslade, Devon County Council

Critics said the Plymouth increase was also unfair because, on average, English councils were getting rises of 4.5%, and it was also below the current rate of inflation.

The Plymouth councillor responsible for the city's budget, Ian Bowyer, said the settlement was a ''kick in the teeth'' for council tax payers.

However, the government said that councils affected by the Icelandic bank crisis would not have to make up any losses in their budgets next year.

Plymouth City Council has £13m invested in three Icelandic banks.

But critics said it was a short-term measure and the council would probably have to pay for it in the future.

Devon County Council's leader, Brian Greenslade, said the council welcomed its percentage increase but said it still left Devon with less funding than comparable authorities.

Job losses

He said: "On the face of it, a 5.3% increase on last year's settlement looks good, but today's Formula Grant plus the funding we will receive for our schools, per head of population, is still significantly below that of comparable authorities.

"Devon this year will receive £40 per person less than the average for similar two-tier shire counties, which amounts to £30m less funding for public services across the county."

He added that that it was also "inevitable" that there may be some job losses because the system could not cope with what the government was asking of it.

He said that added pressures announced by the government in its pre-budget report, increases in fuel duty and employers' National Insurance contributions would also have an impact.

Torbay's unitary authority is to receive a grant rise of 5.7%.

Local Government Minister John Healey said: "The funding increases are tight but they are fair and affordable and will mean councils can continue to deliver quality services."