News Release : 18 November 2005

SOUTH EAST GROWTH UNDER THREAT

The performance of the UK's most competitive region is in jeopardy from Government underfunding of public services says the South East England Regional Assembly. Councils across the region are planning £300 million of services cuts in anticipation of the Government's distribution of the local authority grant next year.

Assembly members, meeting in Reading on 16 November, overwhelmingly backed a resolution pressing for fair funding for South East local government. The Assembly is seeking an urgent meeting with Ministers before the grant settlement for local authorities is announced next month.

Cllr Keith Mitchell, Chairman of the Assembly said: “The South East receives the least Government funding per head in the UK - £793, compared to the national average of £983. Yet the whole country relies on the tax take from the South East's competitive economy. Growth in this region simply cannot be sustained if there is inadequate support for public services and infrastructure. The Government is pressing the region to increase planned levels of development; that creates a need for more investment and not less. We need Government to work with us providing services people need. The South East needs its fair share of the cake.”

Taxing picture
Government plans for local government funding suggest a real increase in funding for services apart from schools of just 0.7%. Yet councils face big cost pressures across a range of key services outside education, from social care through licensing to public transport. With council tax rises likely to be capped at 5%, making significant cuts in services is the only option facing most authorities.

Cllr Mitchell added: “The Government's own inspectors testify that councils in the South East deliver high performance and good value for money. While we are always looking for more efficient ways to manage public services, the funding gap now yawning before us looks unbridgeable without major service cuts.”

Projected service cuts relate to a growing population and additional responsibilities for local authorities:

• Increased pressure on adult and children's social services
• Increased costs of waste management, energy, highway maintenance and insurance
• New concessionary bus fares schemes
• New licensing arrangements.

Contact

Lesley van Dijk, PR Executive - 01483 555223

Heather Bolton, Head of Communications - 01483 555220

Notes to editors:

1. Examples of cuts:
1. East Sussex County Council is facing £10million budget reduction to keep Council Tax rise to 5%.
   
   
2. Brighton and Hove is facing £3.6-£4.2 budget reduction to keep Council Tax rise to 5%.
   
   
3. Aylesbury Vale is facing £2m budget reduction to keep Council Tax rise to 5%.
   
   
2. It is expected that the Government (Office of Deputy Prime Minister) will announce the Revenue Support Grant on Thursday 8 December.
   
   
3. The South East England Regional Assembly is the "voluntary regional chamber" for the South East. It was established in January 1999 to give a representative voice to the South East region which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, and Surrey.
   
   
4. The Regional Assembly is made up of 112 members including elected councillors nominated by the region's local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations) as well as the New Forest National Park Authority..
   
   
5. The Assembly has three areas of core business:
1. It is the representative voice of the South East, engaging and representing its member organisations and, through them, the wider public.
   
   
2. The Assembly has a specific role under the Regional Development Agencies' Act 1998 to ensure the accountability of the South East England Development Agency (SEEDA) to the region.
   
   
3. The Assembly has been the Regional Planning Body for the South East since April 2001. It has responsibility for proposing strategic planning and transport policies to Government.

Last updated: 21 August 2007

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