Balancing the Books: Tackling regional cost pressures for essential staff

Summary:

At a time when budgets are under pressure from changes to the global financial system and rising fuel costs, Local Authorities that incur higher staffing costs are finding themselves penalised by inconsistencies in government's methodologies for allocating grants. As they are forced to spend greater portions of the grant on staffing, less money remains to fund vital services and programmes than enjoyed by neighbouring authorities with lower basic outgoings.

London Councils' analysis shows that over the current spending review period (2008-2011) high cost areas in England will lose out on over £860 million with London bearing almost £575 million of that amount.

The greatest impact can be felt in some of the most deprived areas of the country including Tower Hamlets and Hackney but the losses can be seen across all classes of authority from shire counties to metropolitan cities.