Ministers join MP in hitting back over Council cuts with £93 million cash boost for rural councils

Hexham MP Guy Opperman has accused senior Labour Councillors of "smoke and mirrors" over claims the County Council is being unfairly hit by cuts - as the Government announced a £93 million cash boost for rural councils.

Mr Opperman's response was backed up by a letter from the Secretary of State for the Department for Communities and Local Government, Greg Clarke MP, which revealed that Northumberland will receive additional funding from central government of £2million in 2016/17 and an extra £1.1 million in 2017/18 compared with the provisional settlement.

Labour leader Grant Davey had previously raised "grave concerns" over the settlement, warning last month he was concerned that  “the gap in central government funding between urban and rural residents will widen still further.”

However Mr Clark pointed out that his measures "reverse completely the increase in the gap in funding per head compared with urban areas."

In a letter to local MP Guy Opperman, Mr Clarke said "Some councils and colleagues in rural areas were concerned about the longstanding gap in grant funding between urban and rural areas. I have increased the Rural Services Delivery Grant from £15.5 million this year, to £80.5 million next year. This is in addition to the transitional grant and taken together makes available an extra £93 million to rural councils in 2016/17."

In his letter to Mr Opperman, Mr Clarke concluded "No council loses out as a result of the changes I have made."

In a blistering attack, Mr Opperman said "This Labour administration at County Hall have been found out. They have been playing smoke and mirrors over cuts. The Governemnt is actually increasing our Rural Services grant for Northumberland by an extra £1.75 million next year.

"They tell us they are closing our fire stations here in the West to save money. Whilst at the same time spending £40m on a brand new County HQ in Ashington. They have put £3 million into improvements at Ashington High School Sports College, all whilst Haydon Bridge High was left to fail. That is not to mention the £1million invested into Ashington Football Club for a new stadium."

"Labour have been playing a dodgy game and they have been found out. Over in Ashington they brag about the £74million they are investing in the town, then come and plead poverty over here in the West of Northumberland. They are taking local people for mugs and they won't get away with it any longer."

Figures published by the DCLG show “spending power” in Newcastle will fall from £1,957 per household in the current financial year to £1,871 in the new financial year beginning in April, a fall of £86.

Figures show "spending power" per household falls by £74 in South Tyneside, and in Durham will fall by £69 next year. In Gateshead it falls by £62.

However in contrast, in Northumberland that figure is just £49, making it the smallest reduction in the entire region.

This figure does not just include the government grant, but is the total amount the council has to spend from every source of income, including government grants and council tax.

Cllr Peter Jackson "We have been warning about Labour's huge capital spending in Northumberland for years with their plans to land our county with a debt of £1 billion. The repayments on this are now hitting essential front line services bringing additional cuts this year on £10 million and £25 million over the next three years.

Despite all of this Labour in Northumberland continue to close essential daily services such as our valued Fire Service station in Haydon Bridge as the price for crazy projects such as the £40 million new County Hall in Ashington."