As attention focuses on the impact of housing benefit cuts in London this week, we look at recent research on their impact and the wider impact of cuts in London.
The Government claims that the cuts being made will be fair and progressive, and maintain that the most vulnerable will be protected. However our analysis of the impact of spending cuts on the ground suggests that even at this early stage, it is simply not possible to make such steep reductions in spending without hitting the most vulnerable.
As part of the £6.2 billion in year cuts announced by the Government in May, £1.166bn is being cut in Local Government spending across England through reductions in individual grants given to local authorities.
Research by London Councils has shown that that London will lose around £74.3 million in terms of Area Based Grants (ABG). ABG’s are given to councils to help support deprived communities. The amount of ABG each local authority receives is reflective of their individual needs and circumstances. But in applying the cuts to the ABG, the Government has not taken into account the particular circumstances of the local area. Areas that are already badly off are therefore more likely to feel the impact of reductions in these grants. London Councils shows that deprived boroughs like Hackney and Islington have received massive cuts of over £8 million while affluent boroughs like Sutton and Richmond were cut by £2 million or less. In total London Boroughs and the Greater London Authority (GLA) are set to lose at least £355 million in year as a result of this funding cut in Local Government- this is 30% of the national cut.
Read the the rest of this great blog post on the Touchstone blog
News & Comment
Prices include postage
Recent Comments