Council's Government grant cut by £9 million next year
The Government will give Leicester City Council £9 million less than this year, the authority says.
The council was informed of the figure by the Department of Communities and Local Government (DCLG) on Wednesday.
The DCLG has presented the settlement as a 1.1 per cent increase in the council's spending power but Labour city mayor Sir Peter Soulsby dismissed the department's calculation as fantasy.
Sir Peter said: "We were expecting bad news and bad news is what we got.
"The settlement is extremely complicated, but in a nutshell we have lost £9 million in 2013-14 – from £184 million – and we will lose another £22 million in 2014-15.
"Since 2010-11, we have lost, or will lose, more than £70 million of our annual grant.
"This is approaching 30 per cent and we know there is worse to come.
"I am particularly distressed about a £6 million cut in our funding for early intervention activities with families.
"Although we were expecting this, much-needed services will suffer as a consequence."
Deputy city mayor Councillor Rory Palmer said: "The figures are weeks late and we have had to use estimates in our budget planning."
The city council's draft budget is out to consultation and is due to be approved by the authority on February 20.
Leicestershire County Council has been told its Government funding will be £135.3 million in 2013-14 and £124.7 million in 2014-15.
It said the actual cash reduction was £17.5 million, or 11.4 per cent, in 2013-14 and £10.6 million – 7.8 per cent – the year after.