Camden New Journal - News: Mix-up costs borough £10m

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Camden New Journal - by TOM FOOT
Published: 14 February 2008

Mix-up costs borough £10m

FINANCE chiefs are fuming after the government took back nearly £10 million of funding which has been set aside for Camden since before Christmas.
The Town Hall has been forced to change its spending plans after being told that a Whitehall mix-up meant Camden was given more than it was entitled to.
It has left the Liberal Democrat and Conservative coalition needing to make a late change to its 2008/09 budget, now just weeks away from being settled. A spending forecast was due within a fortnight and the Department for Communities and Local Government has had to apologise.
Lib Dem treasurer Councillor Janet Grauberg said: “This is devastating news for the most vulnerable in our society. Camden residents will rightly feel the Labour government has let them down again. It is a complete shambles and all Camden residents are worse off as a result.”
Camden will now raid its piggy bank of reserve money – a savings account only meant for emergencies – to cover the initial hole in the budget but Cllr Grauberg said the it would lobby government for a long-term solution.
She said that around 50 community projects are at risk of losing cash.
“The council will have to look hard at what it can continue to fund, bearing in mind the other priorities that it needs to meet,” said Cllr Grauberg.
Labour’s deputy leader Councillor Theo Blackwell said: “Changes have been made to the funding based on new statistics about housing occupancy, stress levels and deprivation.
“There have been some net winners and losers across London. Camden and Westminster haven’t done so well. But the council has £30 million sitting in its reserve. This is exactly the sort of situation they should use it for.”

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