Northampton Borough Council reaction to finance settlement

2.36.00pm GMT Fri 7th Dec 2007

Northampton Borough Council will receive an increase of just £231,000, from the Government according to the provisional settlement grant for 2008-09.

The provisional figures show that Northampton Borough Council will only receive a 1.2% increase in government funding this year, and an 0.5% increase in the following two years. This level of increase puts the borough council below the national average of 1.7%, and is the lowest percentage increase in Northamptonshire with a settlement of just £18,700,000.

Lib Dem Councillor Malcolm Mildren

Liberal Democrat Councillor Malcolm Mildren, Northampton Borough Council cabinet member for finance said: "This is very disappointing, we are going to have to look very carefully at the council's budget and where efficiency savings can be found if we are to avoid cuts to services."

"We are being left with no alternative but to challenge the settlement as it is clear that the calculation simply does not allow us to move the council forward and make the improvements needed. Government funding is vital as we are at a point where we are trying to improve our services and cope with the pressures and demands of a growing population."