Norfolk leader urges action on lost grant millions

As Norfolk County Council faces up to tough budget decisions in the face of a £155m funding shortfall over the next three years, council leader Derrick Murphy is urging the Government to urgently review grant adjustments that will cost Norfolk £21.6million next year.

In 2005/06, Norfolk looked set to receive a bigger share of national grant funding after a review by the previous Government - only for a 'damping' mechanism to be introduced to protect grant losers such as Surrey.

In 2011/12, the damping mechanism will remove £21.6million from Norfolk. This is £5m more than the next biggest loser (Kent), and contrasts with an extra £62million in 'protection' funding going to Surrey.

He said: "Next year we are projected to lose £21.6million - that's more than any other county is losing through this 'damping' of our grant entitlement. Since 2006/07 we have lost £118.8million that the Government's own calculations say that Norfolk should receive to support services. This 'damping' of our grant was supposed to be a transitional arrangement to allow other authorities to adjust to the loss of national funding - although frankly I think that the previous Government, not Norfolk residents, should have borne the cost.

"So far this 'damping' has cost Norfolk £118.8million and under the current arrangements this will slice £21.6million from out national grant for next year and £22.3million from 2012/13. At a time when we are facing tough budget decisions in the face of an overall funding shortfall of £155million or more, this is particularly hard to swallow.

"I raised this issue with Eric Pickles (Secretary of State for Communities and Local Government) at the Council Leaders' meeting at 10 Downing Street and have followed this up with a letter asking him to review Norfolk's damping adjustments as a matter of urgency, ahead of the next general funding review, so that this unfairness does not continue for the next two years."