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| Newcastle leader accuses ministers of north-south bias over cuts | Newcastle leader accuses ministers of north-south bias over cuts |
| (about 20 hours later) | |
| Local government funding decisions should be taken out of the hands of ministers to correct a widening and ideologically-driven north-south divide in the way cuts are shared out, according to the leader of one of the UK's biggest cities. | Local government funding decisions should be taken out of the hands of ministers to correct a widening and ideologically-driven north-south divide in the way cuts are shared out, according to the leader of one of the UK's biggest cities. |
| Newcastle city council leader Nick Forbes wants an independent body to be set up. He accuses coalition ministers of abusing the funding allocation system to protect Tory-voting areas in the south, ensuring the deepest reductions were concentrated on councils with the highest levels of social and economic need. | Newcastle city council leader Nick Forbes wants an independent body to be set up. He accuses coalition ministers of abusing the funding allocation system to protect Tory-voting areas in the south, ensuring the deepest reductions were concentrated on councils with the highest levels of social and economic need. |
| Forbes said a body like the Office of Budgetary Responsibility was needed to restore faith in a "broken" system, which ministers had further tarnished by spin and misinformation. | Forbes said a body like the Office of Budgetary Responsibility was needed to restore faith in a "broken" system, which ministers had further tarnished by spin and misinformation. |
| He said: "The future of our libraries, leisure centres, social care services, infrastructure and environment in every part of our country is determined by a system that cannot be trusted, and has long since departed from any sense of objectivity. It is difficult to escape the conclusion that ministers are making cynical politically-motivated decisions, hiding behind a complex system understood by only a handful of people." | He said: "The future of our libraries, leisure centres, social care services, infrastructure and environment in every part of our country is determined by a system that cannot be trusted, and has long since departed from any sense of objectivity. It is difficult to escape the conclusion that ministers are making cynical politically-motivated decisions, hiding behind a complex system understood by only a handful of people." |
| There has been widespread anger and disbelief at the huge scale of cuts forced on local government, with some councillors warning of a "looming financial crisis" that will bankrupt smaller authorities and force others to provide a skeleton service consisting of social care and bin collections. | There has been widespread anger and disbelief at the huge scale of cuts forced on local government, with some councillors warning of a "looming financial crisis" that will bankrupt smaller authorities and force others to provide a skeleton service consisting of social care and bin collections. |
| The Local Government Association has said that additional cuts announced by ministers in the autumn statement meant that the scheduled 28% cut in council funding up to 2015 was now more than 33%, a situation the Tory-led association called "unsustainable." | The Local Government Association has said that additional cuts announced by ministers in the autumn statement meant that the scheduled 28% cut in council funding up to 2015 was now more than 33%, a situation the Tory-led association called "unsustainable." |
| Using the latest official figures, Newcastle has calculated that the poorest areas are bearing the brunt of the cuts is being shouldered by the poorest areas, and that while all councils are facing cuts of some degree, the allocation of those cuts means income is being shifted from urban to rural areas, and from north to south. | Using the latest official figures, Newcastle has calculated that the poorest areas are bearing the brunt of the cuts is being shouldered by the poorest areas, and that while all councils are facing cuts of some degree, the allocation of those cuts means income is being shifted from urban to rural areas, and from north to south. |
| "The areas worst affected by cuts have been inner London and towns and major cities of the north and Midlands. The similarity between the map of party political control and the map of relative cuts is remarkable," Forbes writes in an internal council briefing seen by the Guardian. | "The areas worst affected by cuts have been inner London and towns and major cities of the north and Midlands. The similarity between the map of party political control and the map of relative cuts is remarkable," Forbes writes in an internal council briefing seen by the Guardian. |
| The current administration was breaking up the long-standing consensus in which local government resources were allocated with fair regard for an areas' relative social and economic needs, and ability to raise revenue locally through the council tax, said Forbes. | The current administration was breaking up the long-standing consensus in which local government resources were allocated with fair regard for an areas' relative social and economic needs, and ability to raise revenue locally through the council tax, said Forbes. |
| An independent funding body would not take away ministerial accountability for local government funding allocation, but would make the process more independent and transparent, and prevent it being manipulated for party-political ends. This should continue even under a future Labour government, to "restore faith in the system," he adds. | An independent funding body would not take away ministerial accountability for local government funding allocation, but would make the process more independent and transparent, and prevent it being manipulated for party-political ends. This should continue even under a future Labour government, to "restore faith in the system," he adds. |
| The local government minister, Brandon Lewis, described the system as "fair to north and south" and appeared to rule out the creation of an independent body to oversee council allocations. "Just as with finance bills which implement the provisions of the budget, the local government finance settlement is approved by a vote of parliament, meaning there is proper democratic accountability by elected representatives." | The local government minister, Brandon Lewis, described the system as "fair to north and south" and appeared to rule out the creation of an independent body to oversee council allocations. "Just as with finance bills which implement the provisions of the budget, the local government finance settlement is approved by a vote of parliament, meaning there is proper democratic accountability by elected representatives." |
| In a dig at Forbes, he said: "It is surprising that someone who has previously attacked unelected quangos now wants to create new ones. " | In a dig at Forbes, he said: "It is surprising that someone who has previously attacked unelected quangos now wants to create new ones. " |
| While in opposition, the current communities secretary, Eric Pickles, called for a similar body – an independent grants commission – to distribute council funding in a non-political way. | While in opposition, the current communities secretary, Eric Pickles, called for a similar body – an independent grants commission – to distribute council funding in a non-political way. |
| In a parliamentary statement before Christmas, Pickles compared Newcastle with Wokingham borough council in Berkshire to back up his claim that the local government allocations were fair. He said Newcastle had a spending power of £2,522 per household, or £700 a head more than Wokingham's £1,814. Newcastle says its calculations show that over the past two years Wokingham's grants had been cut by £1 per person, or £2 per household. In Newcastle, where demand for public services was higher and local tax revenue was lower the grant cut amounted to £143 per person and £329 per household. Over the next two years, Wokingham would lose a further £59 per household in spending power, while Newcastle would lose £174. | In a parliamentary statement before Christmas, Pickles compared Newcastle with Wokingham borough council in Berkshire to back up his claim that the local government allocations were fair. He said Newcastle had a spending power of £2,522 per household, or £700 a head more than Wokingham's £1,814. Newcastle says its calculations show that over the past two years Wokingham's grants had been cut by £1 per person, or £2 per household. In Newcastle, where demand for public services was higher and local tax revenue was lower the grant cut amounted to £143 per person and £329 per household. Over the next two years, Wokingham would lose a further £59 per household in spending power, while Newcastle would lose £174. |
| Forbes said the city, which had calculated it would have to make cuts of £90m over the next three years, now needed to make £100m cuts as a result of changes introduced in Pickles' local government funding announcement in December. | Forbes said the city, which had calculated it would have to make cuts of £90m over the next three years, now needed to make £100m cuts as a result of changes introduced in Pickles' local government funding announcement in December. |
| Newcastle has come under fire for proposing to cut the city's arts budget by 100% over three years. But Forbes told the Guardian this was "an inevitability of the current direction of government policy." | Newcastle has come under fire for proposing to cut the city's arts budget by 100% over three years. But Forbes told the Guardian this was "an inevitability of the current direction of government policy." |
| He said: "I get all the arguments about how this is undermining Newcastle's progress as a city of culture. I buy those arguments. But for me, there's a serious point to be made about the money running out. | He said: "I get all the arguments about how this is undermining Newcastle's progress as a city of culture. I buy those arguments. But for me, there's a serious point to be made about the money running out. |
| "We have predicted that by 2018 the council won't even have the resources to provide its legal statutory services. In that context everything has to be on the table." | "We have predicted that by 2018 the council won't even have the resources to provide its legal statutory services. In that context everything has to be on the table." |
| Newcastle, along with Liverpool and Sheffield, warned last week that the cuts would lead to social unrest and the break up of civil society. | Newcastle, along with Liverpool and Sheffield, warned last week that the cuts would lead to social unrest and the break up of civil society. |
| Newcastle's said its claims were backed up by a study published by the Audit Commission in November. This said that while per capita funding in poorer areas was still higher than in affluent areas, deprived councils "have seen substantially greater reductions in government funding as a share of revenue expenditure than councils in less deprived areas". | Newcastle's said its claims were backed up by a study published by the Audit Commission in November. This said that while per capita funding in poorer areas was still higher than in affluent areas, deprived councils "have seen substantially greater reductions in government funding as a share of revenue expenditure than councils in less deprived areas". |
| Hilary Benn, the shadow communities secretary, said: "Eric Pickles' cuts are deeply unfair, taking more funding per head away from areas of greatest deprivation than from areas with less acute needs. There has to be fairness in financing local government and we will examine all suggestions about how this can be done." | Hilary Benn, the shadow communities secretary, said: "Eric Pickles' cuts are deeply unfair, taking more funding per head away from areas of greatest deprivation than from areas with less acute needs. There has to be fairness in financing local government and we will examine all suggestions about how this can be done." |
| • Read the full interview with Nick Forbes. |