The latest budget battle between the LGA and ODPM ministers over next year's grant settlement began the moment the last was averted by Gordon Brown's nth hour largesse. A year ago, ministers were just months away from a general election, and reluctant to hit the campaign trail against a backdrop of huge council tax rises, rioting pensioners and town hall budget cuts. The LGA, in effect, had the Government by the short and curlies. Sir Michael Lyons was ordered to examine the funding regime, and the chancellor found ￡700m in his back pocket. Average tax rises ended up as 4.1%, and the issue evaporated. But it was clear that the last-minute injection of funds was only a temporary palliative, and that precisely the same battle would re-occur for next year's grant settlement. Indeed, the LGA has been planning its campaign all year, and is particularly aware that this is a hearts and minds battle for public support.
展开▼
