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Reduction in borough budgets

Key points

  • The percentage cuts to boroughs' "spending power" varies from 2% to 8.9% of their budgets.
  • Tower Hamlets, Newham and Hackney saw the biggest budget cuts in the country.
  • The budget cuts have been greatest in deprived Inner London boroughs.

Cuts in borough budgets 2011/12

What does this graph show?

This graph looks at the reductions to borough budgets, measured in "spending power". This means the total reduction once grants and council tax revenue have been taken into account.

Tower Hamlets, Newham and Hackney have all seen cuts in their budget spending power of 8.9%. As well as being the highest cuts in London, they are the highest in the country, along with Manchester and Birmingham. (The cuts were capped at 8.9%). In contrast, Richmond, Havering and Harrow have seen cuts of less than 2%.

To put this in financial terms, Newham has £44 million less to spend in 2011/12 than in 2010/11 (£335.8 million compared to £368.2 million). Tower Hamlets has £41 million less (£342.6 million compared to £376 million). Richmond has £1 million less (£166.7m compared to £167.7 million).

Inner London boroughs have seen, on average, much higher cuts than Outer London boroughs. Every single Inner London borough, East and West, has a higher than average cut compared to London's boroughs as a whole. So more affluent boroughs in Inner London have seen bigger cuts than poor boroughs in Outer London, such as Barking & Dagenham or Waltham Forest. But poor Inner London boroughs have been cut the most.

Data used

DCLG 2011

Indicator last updated: 28 March 2014