Tower Hamlets Council’s spending power slashed

  • Council spending power per household in Tower Hamlets has reduced by £1,305.20 between 2010/11 and 2019/20
  • Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average
  • Eight out of the 10 areas seeing the smallest cuts to spending power per household are Conservative-controlled

Tory cuts to local government are hitting Labour areas, London, the North of England and the most deprived councils hardest, according to new Labour Party analysis.

Local authorities’ spending power per household is on course to fall by an average of 23 per cent (£254) between 2010-11 and 2019-20. But Labour councils are set to see falls of 28 per cent on average, compared to a 19 per cent fall for Tory councils.

Spending power is an estimate of the amount of funding available to each council to spend on their core services.

This means that while Tory councils will see an average fall in spending power per household of £120, the equivalent cut for Labour councils is more than £539 per household – four times higher than Tory areas.

All ten of the top 10 councils set to see the biggest cuts to spending power are Labour councils while six out of 10 of the councils receiving the best settlement over the ten years are Conservative-controlled.

In addition, the most deprived areas of the country are being hit particularly hard. Nine of the ten most deprived councils in the country have seen cuts of almost three times the national average cut of £254.

Council spending power per household in Tower Hamlets – the 10th most deprived local authority in England – has reduced by £1,305.20 between 2010/11 and 2019/20.

In a further blow to councils, the Government’s ‘Fair Funding Review’, which threatens to change the way that local councils are funded, could see more than half a billion pounds diverted from London boroughs mainly to shire areas.

Mayor of Tower Hamlets John Biggs said: “Councils across the country have felt a real squeeze on their budgets over the last decade and these new figures highlight how bad it’s become under the Tory Government. Our spending power has reduced by more than £1,300 per household and this has a major impact on the services we can provide. Tower Hamlets, Newham and Hackney are the worst affected councils and it goes to show just how badly we need a Labour Government to reverse the damage done.”

Cllr Candida Ronald, Cabinet Member for Resources, said: “Tower Hamlets is the 10th most deprived local authority in England and yet we are one of the top targets for Government cuts. It is typical of this Government to slash budgets where they’re needed the most.”

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