In the last three years Southwark has moved from being the 17th to 20th poorest part of England. 

Central government provides roughly 70% of all the money local councils spend. Central Government also passes laws on what as a minimum they expect councils to deliver. Southark Council is no different. The Labour Government has decided to adjust the formula for calculating allocations. Firstly they’ve decided to use 2004 population estimates rather than the readilly available 2006 population estimates. This penalises London but especially Southwark. Instead of receiving a grant towards 272,000 residents the calculation will be based on 2004 266,000 residents. Various other changes to the formula mean that in real terms for the next three years Southwark Council will be getting a cut in funding from the Labour Government while contending with a rapidly aging population.

You’ll be surprised to hear that Rotherham, the 50th poorest place in England, is getting 6.6% increase this year in its allocation. I’m sure this has nothing to do with having a Labour Local Government Minister John Healey as the local MP but you can see how a cynic might make such an unfounded connection.

Needless to say Southwark Counil and thE Liberal Democrats are appealing this decision. I have to remain hopeful that common sense will prevail.