Local authority funding policy - giving to the rich whilst taking from the poor

Analysis of the Government's own figures has revealed that deprived areas are bearing the brunt of austerity while local authorities in affluent areas are seeing their funding topped up by 'transitional' and 'relief funds'.

The Tories have handed wealthy areas additional funding while Haringey and other deprived London boroughs suffers yet more cuts.

Haringey Council will have lost £452.44 per household in spending power by 2020. Meanwhile, wealthier areas will see an increase in spending after George Osborne handed hundreds of millions of pounds to wealthy Tory councils ahead of this May’s council elections.

David Lammy MP said:

“The Tories’ latest round of spending cuts are hitting the most deprived areas the hardest, with Labour-controlled areas like Haringey facing brutal cuts while affluent Tory areas are shamelessly seeing their funding increased.

“I am worried about the impact that yet more cuts will have on many of my constituents as services in Haringey have already been cut to the bone. The Tories’ policy of funding increases for the rich and cuts for the poor demonstrate that the Prime Minister’s assault on poverty is just empty rhetoric”.


  1. Spending power refers to the total amount available to councils – including income from central government grants, council tax, and business rates – and is the Government’s preferred measure.

  2. Data sources:

  3. Spending power 2010-2015:

  4. Spending power 2015-2020:

  5. Dwelling figures; ONS (as at September 2015)

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