This was during the mass campaign the city council waged against the Thatcher Government which had cut the
rate support grant.
| Homelessness strategy and financial support While the homelessness grant has been added to the
rate support grant, the needs relating to homelessness have not decreased.
If Conservative politicians want to bring billions of pounds to the region they should put it back where it used to be - in the
rate support grant formulas."
This in turn can lead to a drop in our
rate support grant and ultimately less money to spend on service provision.
He said finances were already under pressure due to an inadequate
Rate Support Grant from the Welsh Assembly.
But the employment department insisted today that councils were NOT being instructed to pay white collar workers rises which would break the limit -and said that if pay limits were breached, councils could be penalised by .having some
rate support grant withheld.
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 4.9pc.
Arranging the
rate support grant, policing the council tax, and setting the uniform business rate ought to lie with the Treasury, where the background control it has always exerted can be exposed and thus made accountable.
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.
But, from 2020, the council's finances potentially fall off a cliff with the end of
Rate Support Grant from the Government.
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.