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Spending Round 2013

  • By London Councils

Spending Round 2013

On 26 June 2013 the Chancellor of the Exchequer George Osborne revealed details of the Spending Round outlining government spending plans for the year 2015/16 and confirmed a further £11.5 billion of spending reductions in that year.

Spending reviews are the government’s mechanism for setting departmental spending limits over the medium-term. Historically these have been three or four year plans, but in a break with tradition, the 2013 Spending ‘Round’ only deals with one year (2015/16) to reflect the general election in spring 2015. The Chancellor outlined the government’s spending plans for that year with real terms reductions of 2 per cent in resource spending across government.

However, as spending on health, schools, international development, the devolved administrations and the frontline military have been protected, the remaining departments are facing larger cuts. Resource funding for the Department for Communities and Local Government (DCLG) will reduce by 10 per cent. London boroughs receive the majority of their central government funding from DCLG and can therefore expect further funding reductions in 2015/16. A summary of the key points relating to London local government is listed below

Key points for London Local Government

  • 10 per cent real terms cut to DCLG resource budget in 2015/16
  • £3.8 billion of funding for NHS and Social Care integration - including £2 billion of ad­ditional funding
  • £335 million budget to prepare for care reforms
  • £200 million for expansion of the Troubled Families programme – funding will come from five departments including DCLG
  • Council tax freeze grant to continue in 2014/15 and 2015/16
  • Council tax referenda threshold confirmed at 2 per cent for the next two years
  • A reduction of £200 million in Education Services Grant in 2015-16
  • £400 million from New Homes Bonus to be pooled within Local Enterprise Partnership (LEP) areas to support strategic housing and economic development priorities.

 

Links to our briefings on the 2013 Spending Round can be found below:

Post SR13 member briefing (members only):

Post-Spending Round 2013 member briefing (members only)

SR13 on the day officer briefing:

Spending Round 2013 - on the day officer briefing

Pre-SR13 member briefing (members only):

Pre-Spending Round 2013 member briefing (members only)

Spending Round 2013 London Councils Submission

Spending Round 2013 London Councils Submission