Pledge By Labour MP Could Affect Scilly’s Council Funding

town hall 4Our Council could get reduced government funding under a future Labour government.

It follows a pledge last week by Labour MP and Shadow Local Government Minister, Hilary Benn, to look at the way funding is allocated to local authorities.

Mr Benn wants to see a more equal distribution of money across different councils.

Scilly currently does well from the yearly allocation. This year, the spending power per household for our Council, at £4,180, was second only to the City of London.

The average across the UK was £2,088.

And analysis by the Association of North East Councils shows that under the current system, 13 authorities, including the Isles of Scilly. will see an increase in spending power up to 2015/16. The other 12 are all in the Home Counties.

Over the same time period, ten of the most deprived areas in the country are losing up to £782 per household.

The government currently takes into account our small council tax base on the islands when working out our funding. It’s unclear yet whether Hilary Benn’s proposals would do the same.