Local Government Finance Settlement 2011-12 (England) — 9 Feb 2011 at 19:43

The majority of MPs voted in favour of reducing funding for local councils by 4 percent in 2011-12 compared to 2010-11.

The approved motion stated:

• That the Local Government Finance Report (England) 2011-12 (House of Commons Paper No. 748)^[1], which was laid before this House on 31 January, be approved.

The Local Government Finance Report (England) 2011-12 sets out how much central Government is going to pay local Government in England.

The Audit Commission has summarised the local Government finance settlement for 2011-12 as follows^[3]:

• total government revenue funding of £72.7 billion for local authorities in 2011/12, a decrease of 4 per cent compared to 2010/11. When funding for frontline schools, which has been protected from the cuts, is excluded, the decrease in total revenue funding is 9.5 per cent;
• distributed £29.4 billion in formula grant in 2011/12, a decrease of 9.9 per cent compared to 2010/11;
• provided transitional grant of £96.2 million in 2011/12 for authorities that would otherwise see a reduction in their 'revenue spending power', as defined by central government, of more than 8.8 per cent; and
• made £650 million available to fund a council tax freeze in 2011/12.

A Department for Communities and Local Government press release^[4] issued on the day the report laid before the house similarly summaries the settlement.

• [1] Local Government Finance Report (England) 2011-12 (House of Commons Paper No. 748) via official-documents.gov.uk
• [2] Local Government Finance Report (England) 2010-11 via official-documents.gov.uk
• [3] Audit Commission "Value for Money" section on Councils
• [4] Government confirms progressive settlement and fair deal for communities - Department for Communities and Local Government - 31 January 2011

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