Magazine article Public Finance

DCLG Cuts Are the First of Many, Economists Warn

Magazine article Public Finance

DCLG Cuts Are the First of Many, Economists Warn

Article excerpt

Spending cuts to the Department for Communities and Local Government are only the first step on a very long journey, according to the Institute for Fiscal Studies.

The comments, from deputy director Carl Emmerson, were in response to ministers' announcement of cuts worth £6.2bn across the public sector during 2010/11.

These include an overall £1.185bn cut to communities and local government spending, with £780m targeted at communities budgets not overseen by councils.

The block grant for local authorities will remain untouched this year.

According to the IFS, the overall amount spent on councils is to drop by 1.2% this year compared with 2009/10. Meanwhile communities spending will fall by 27.4% from 2009/10 levels.

The sharp reduction is because the previous year's figure was inflated as the last administration brought forward some 2010/11 funding in an attempt to stimulate the economy. But the new cut is still more than the 23% planned by Labour. …

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