Last week the Government announced the funding settlement for all local Councils, including Islington, for the next year (2004-5). This is another disappointing announcement in its impact on Islington. The Government is giving us somewhat less than we had expected. And as last year, the Government is giving Islington a smaller increase in funding than it is giving most inner London boroughs. This does not mean a disaster for the Council's funding position, but it does mean that the budget for next year will be extremely tight. The Council will obviously do everything we can to make the most of the resources that we have, but the Government's decision does mean that taking difficult decisions in one area or another will be unavoidable. As the Labour leader in London local government, Cllr Sir Robin Wales, said, "this settlement unfortunately won't allow us to continue to provide a range of local services valued by our communitiesÖThis settlement will not allow us to build on some excellent initiatives London's boroughs have introduced." And as the Labour national local government leader at the Local Government Association, Cllr Sir Jeremy Beecham, said, "many councils have a serious shortfall to bridge in planning the budgets and council tax for the coming year". Cllr Bridget Fox, Deputy Leader of the Council, commented "Even Labour leaders in local government agree that this settlement is insufficient to provide the services that people need. "This disappointing settlement just shows again that Labour does not understand the challenges local people in Islington face. Labour failed Islington when they ran the Council here, and now they fail Islington from the national Government. "Islington is one of the most deprived areas in the country, but the Government is giving us a smaller increase in funding than most of inner London." Cllr Laura Willoughby, Member of the Council's Executive, added: "As a governor of Highbury Quadrant school I know the confusion that the government's funding announcement last year caused in education." m/f "The Liberal Democrats have made investing in education locally a key priority, so it is very disappointing that again this year the Government are giving us less money for education than we need to deliver our priorities." In Education, after the fiasco last year of the Government first blaming local authorities for taking money away from schools, and then being forced to admit that the Government itself had got it wrong, the signs for this year are not promising. Charles Clarke's claim that this year he will assure a minimum rise in funding for every school has already proved disingenuous: the increase in funding the Government is providing is less than we need to deliver the education services our children deserve. This year Charles Clarke made many early announcements about funding, but these were completely meaningless until the figures in the settlement last week were made public. The difference between the two is another example of Labour failing to provide joined-up government. The Council is now working on what the implications for Council Tax. With almost every local authority around the country expecting a further significant rise this year, it is clear that it is national government's national decisions about funding which is causing these, rather than capricious decisions by irresponsible individual authorities. Whatever the Council's calculations say, however, Islington Liberal Democrats remain committed to keeping Islington's Council Tax below the average in London. In the current year Band D Islington Council Tax is more than £100 less than each of our three neighbouring authorities and we will be working hard to keep it as low as possible next year.
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