Council 'Got off Lightly' on Funding Settlement says MP

12.00.00am GMT Tue 10th Dec 2002

Vincent Cable, MP, said that while the government grant increase this year to Richmond represented only half the national average (3.5% versus 7.1% for the country and 5.3% for London) the borough was protected by a floor - a minimum increase - and "got off lightly" in view of the census data showing that the borough's population has risen far less than was predicted:

"These financial settlements are very complex though this year some effort has been made to simplify the arrangements and to give councils more freedom to spend money as they choose."

"As far as I can see the borough has gained a little because its costs are higher than average, but lost some because we have little deprivation."

"The schools have got an extra 7% which should be enough to maintain high standards".

"The council should not need to push up council tax sharply since the settlement, while not especially generous, is not so bad and the council inherited a strong financial position."

"If there is a big increase in council tax, residents will I think be very angry."

"The underlying problem is that the system of council tax - which the Conservatives introduced during the Major government - is only very loosely related to 'ability to pay' and is very onerous, especially for elderly people with small incomes."