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NILGA – MINISTER MAKES CUTS TO LOCAL GOVERNMENT’S ‘RESOURCE FUNDS’
30 July 2010
In Year Cuts to Council’s Budget Will Have Impact on Services
President of NILGA Councillor John Mathews said “Last Friday afternoon, eighteen councils were notified by email by the Department of the Environment that they were cutting the resources element of general grant funding previously advised for the setting of district rates by councils. Overall this amounts to an in year cut of £1.15 million and is likely to have an adverse impact on council services planned for delivery for the rest of the year.
Councillor Mathews continued, “We were made aware of the financial pressures facing the Department of Environment by the Minister at a recent meeting and that there would be a need for cuts. However, as the Local Government Association we were not aware of what these would be and when they would be imposed. It is a shocking blow for councils who have already budgeted for the funds committed by the Department, to now find additional money to ensure the services will continue to be provided. Alternatively, some councils may have no alternative but to cut services to address the funding shortfall.
“While councils are still calculating the overall impact to their services, ten councils will have over £60k withdrawn in funding, with one particular council experiencing more than £100k withdrawn in critical funding required to support them in providing essential services.
“The Resource Element of General Grant was established to provide additional funding on a targeting social need basis to those councils whose ability to raise rates revenue was below the NI average. This proposed funding cut of almost 6% in addition to a 5% cut imposed by the Minister at the start of this financial year means that those councils who can least afford a cut in funding will be hardest hit.
“NILGA representatives have requested an urgent meeting with Minister Poots to raise our concerns at these proposed cuts and would request that no cuts are implemented until this meeting takes place, as it is important that all avenues are investigated first. Any proposed cuts to funds which will have an adverse impact on services must be discussed and contingency plans put in place. Changes to funding should not be imposed half way through the year when the funds have already been allocated. We find this a very unsatisfactory position for local government.”
End.
For more information please contact: Tara Cunningham, Director of Communication & Engagement t.cunningham@nilga.org or Mark Maher, Communications Officer m.maher@nilga.org
Northern Ireland Local Government Association NILGA
Unit 5B Castlereagh Business Park, 478 Castlereagh Road, Belfast BT5 6QA.
Tel: 028 9079 8972 Web: www.nilga.org
