ANEC response to Provisional Grant Settlement consultation

15 January 2013

ANEC set out the detail of its response to the Provisional Grant Settlement consultation along with additional information and illustrative examples which it hopes will be helpful in DCLG's discussions with Treasury and other Government departments.

All of the issues highlighted in ANEC's submission have been informed by and supported through a member-led, cross party resources task and finish group.

In summary ANEC asks the following of the Government:

In 2013/14 to:

  • Rethink the top-slice of unnecessary cuts of £115m to reduce the impact on council budgets;
  • give clarity on the missing detail in the cut for the Early Intervention Grant;
  • review the operation of New Homes Bonus (NHB) as a matter of urgency to provide more equality across the scheme;
  • re-balance the central share/relative needs block without cutting the needs block;
  • resolve the business rates appeals issue; and
  • find a more effective damping protection solution to remove the perverse outcome for some councils.

In 2014/15 to:

  • Lower the New Homes Bonus cuts approach;
  • separately identify and protect council tax support at the funding level advised by Office for Budget Responsibility consistent with a10% cut in 2013/14 only; we are concerned that in effect Council Tax Support has been rolled into the central grant and has been cut by an average of 8.6% - an additional cut on top of the current distribution; and
  • ensure Council Tax Resource Equalisation is maintained in real terms from 2014/15 onwards.

Read the full ANEC response to the Provisional Grant Settlement Consultation

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