Cherwell District Council will face a 5.4 per cent cut in next year's grant settlement following yesterday's announcement by local government secretary Eric Pickles. In his statement to Parliament, he announced 'the greatest shake-up of local finance in a generation'.
Cherwell's current-year grant stands at £7.6 million and the equivalent funding will drop to £7.2 million for 2013/14. From next April, Cherwell will also retain 50 per cent of any business rate growth above its baseline. This is a new regime and the full details are being analysed and the forecasted impact will be reported in forthcoming budget reports in January and February 2013.
Councillor Ken Atack, lead member for finance said: "These figures come as no surprise as Mr Pickles publicly warned of a looming financial crisis . We have worked hard at Cherwell to ensure that we had already identified a significant proportion of the necessary savings. We are now considering the options for the remainder."