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Tower Hamlets could lose £3m a year in government funding says council

PUBLISHED: 12:30 22 February 2020

Mayor John Biggs says the governments Fair Funding review will 'funnel money away from Tower Hamlets into leafy Tory shires like Hampshire and Sussex'. Picture: Mike Brooke

Mayor John Biggs says the governments Fair Funding review will 'funnel money away from Tower Hamlets into leafy Tory shires like Hampshire and Sussex'. Picture: Mike Brooke

Mike Brooke

A reallocation of council funding could see Tower Hamlets lose more than £3million a year, councillors have warned.

Under the government's review of the local authority funding formula some areas of high deprivation, such as Tower Hamlets, could see millions slashed from their budgets, analysis commissioned by the Local Government Association found.

It is estimated that the "fair funding review" would wipe £3.1m from Tower Hamlets' government grant.

On Wednesday, February 19 the council passed its budget for the year ahead, raising council tax by 3.99 per cent.

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Mayor John Biggs said the town hall already faces having to make £39m of cuts by 2023.

He said: "The government's Fair Funding review will not mean a fairer way of funding local councils but will instead funnel money away from Tower Hamlets into leafy Tory shires like Hampshire and Sussex.

"These figures from the LGA are based solely on what the Fair Funding Review might mean for social care funding, but they reveal the government's plans to cut council budgets in inner London and redistribute the cash elsewhere. This estimated £3m cut for Tower Hamlets is just the tip of the iceberg and it signals a much larger cut yet to come."

Indicative allocations of how much each UK council will get in central government funding are due to be published in the spring.

A spokesman said: "Funding allocations for adult social care should be fair and based on the best available evidence."


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