This in turn can lead to a drop in our rate support grant
and ultimately less money to spend on service provision.
Only 12% of their grant is required to be made up from Council Tax with 19% from Rate Support Grant
, 44% 'other grants' and 25% in fees and charges.
Frank Bowen writes: "The Militant Labour council was elected on a programme of protecting jobs and services, building homes for rent for the most needy, not putting up rates to compensate for government cutbacks in rate support grant
, not putting up rents as they were already one of the highest in the country, building six new sports centres, child care nurseries across the city .
He said finances were already under pressure due to an inadequate Rate Support Grant
from the Welsh Assembly.
9m through the rate support grant
, just short of what was needed to fund the scheme, which led to cuts in some subsidised bus routes, higher fares for children and reduced concessions for students.
But, rather than redistributing this sum back into local government, it had chosen instead to reduce its rate support grant
to local councils by a similar amount - from pounds 4.
He said that the proposed three per cent cut in rate support grant
would lead to unavoidable rate rises and further cuts in services.
But the final Rate Support Grant
(RSG) award announced by the Government this week has a bearing on the level of council tax and the rise could now be fixed at 4.
The pay settlement for local government that is in the pipeline will cost Cardiff pounds 19m, but the increase in rate support grant
only gives us pounds 17m.
WHILE the much-criticised local authorities are not totally blameless for sharp rises in council tax, the primary cause is the drastic cuts in Rate Support Grant
imposed by successive Westminster governments.
Rate support grant
to local authorities was cut so there was less money for books and teachers in schools, as well as for libraries, buses, repairs to houses, special schools and outdoor centres.
It can only go into the hank, possibly to be used for keeping the rates down next year, unless the Government spot the city's bigger balances and chop the rate support grant