Scilly’s Council Comes Off Lightly In Latest Government Spending Review

town hall 4 copyThe islands’ Council has got off lightly in the cuts made by the Chancellor yesterday.

George Osborne has announced a 10% drop in funding for local government from 2015 but when other changes to public spending are factored in, it will mean only a 2.3% reduction in our Council’s financing.

The Town Hall receives around £4.8m in central grants and the new cuts will mean a drop of £100,000.

But the Council still needs to trim £600,000 off its annual spend before that, to avoid running out of cash reserves.

Authorities are also being discouraged from increasing Council tax by more than 2% for another two years.

And pay rises for workers are likely to limited to 1% following the national guidance.