On average, predominantly rural authorities were expected to receive a 5.58 per cent reduction in their Formula Grant and urban local authorities a 3.54 per cent reduction. Harborough received a 8.38 per cent reduction in its Formula Grant for 2013/14, which is more than average, whereas Leicester received only a 0.74 per cent reduction. Per head, this means that individuals in Harborough will receive a figure of £158.58 whereas in Leicester the figure per head is much higher, at £515.56.
When asked about the disparities in figures, David Cameron commented “needs are greater in different parts of the country, which is why the figures are different, but I think that the figures speak for themselves.”
The reason the Formula Grant has decreased so much is because there is a lower proportion of people not paying their council tax in Harborough, whereas urban authorities contribute around £76 less per head in council tax. Council tax per head in Harborough is approximately £424.93, compared to £294.15 in Leicester, a difference of £130.78. The ‘spending power’ per head however, is much higher in Leicester, at £993.68 compared to £706.53 in Harborough, a difference of £287.15.
Sir Edward Garnier, MP for Harborough, commented, ‘This is obviously very bad news for the people of Harborough. But I am hopeful that the local authority will be able to maintain key services and that the residents of Harborough will not see any change in their standard of living. The low level of spending per head allocated to Harborough shows that we have low levels of unemployment and high levels of contribution, something to be proud of. As the Prime Minister said, needs are different in different parts of the country, but I will campaign for the people of Harborough at every opportunity to ensure that they have the best of whatever is offered by the Government’