Labour's Triple Whammy Cuts to Southwark Budget

12.51.33pm GMT Thu 15th Dec 2005

Southwark Liberal Democrats have blasted the Government's "insulting" finance settlement, claiming it will leave the Council facing budget cuts and potential service reduction.

At an Executive meeting this week, the Liberal Democrat members were forced to accept one of the worst settlements in London from the Government.  While Camden gets a massive 3.8% increase and Kensington and Chelsea 3.3%, Southwark - a much more deprived borough - gets just 2.2%.

In a triple whammy, the Council will see less money for an increase in service demands from the Government, a £3.4m gap in the housing revenue account and a freeze on the housing maintenance allowance.

Cllr Nick Stanton, Lib Dem Leader of the Council, said:

"This grant settlement is an insult to everyone who lives and works in Southwark.  It shows Labour has absolutely no regard for the levels of deprivation in our borough.

"The Lib Dems are committed to delivering high quality services while keeping council tax affordable, but the Government seems intent on destroying that goal.

"The reality is that we are already tightening our belts to meet the Government's efficiency targets, so this can only impact on service delivery."

Cllr Catherine Bowman, Lib Dem Deputy Leader and lead member for Children's Services, added:

"The Labour Government claims that 'Every Child Matters', but not it seems if you live in central London. 

"This settlement puts demands on us to deliver many services for children but doesn't give us the funding to carry it out.  They can't have it both ways."