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More or Less

Council of despair

More or Less

BBC

News Commentary, Science, Mathematics, News

4.63.7K Ratings

🗓️ 17 December 2010

⏱️ 29 minutes

🧾️ Download transcript

Summary

Local government budgets are being cut. More or Less looks at how the pie is sliced and finds everything depends on Wokingham (yes, really). Plus: we take a look at inflation and consult the magic More or Less monkey.

Transcript

Click on a timestamp to play from that location

0:00.0

Thank you for downloading this week's more or less podcast. Here's Tim Harford.

0:05.1

Hello, and welcome to more or less your numbers. I view of the news this week

0:09.9

How much should you be earning if you're a 43-year-old man called David?

0:14.1

Why the UK's inflation target is set it between 1 and 3% and why we keep missing it and more from our psychic Simeon Jack

0:21.8

We'll also be exposing a cunning media hoax

0:25.4

So what I did was I took all the data on the number of mobile phone

0:29.8

Transmitter masks in each county and the United Kingdom and then I showed that has an extremely strong correlation to the number of births in the same regions

0:39.3

But first on Monday the government announced that a key element of English local government funding would be cut by

0:45.9

9.9% in 2011 to 2012 and by 7.3% in 2012 to 2013

0:52.3

Speaking in Parliament the community secretary Eric Pickles was emphasizing a different number

0:58.2

In fact, Mr Speaker the average reduction in spending power for

1:03.1

2012 for 2011 2012 is 4.4%

1:10.6

There is a simple explanation for this

1:12.8

Councils have other sources of revenue beyond their ground from local government

1:16.7

So it is logically possible for a 9.9% fall in the government grant to lead to a 4.4% fall in average spending power

1:24.9

But the details of how the central government grants are calculated are fiendishly complicated

1:29.9

I asked Hugh Grover the director of policy for London Councils and one of the few people who seems to understand how it all works

1:37.0

How it all works? Well, unfortunately Tim, there's no

1:40.2

Really simple answer to that question because the world of local government finance is just so complex

1:45.3

But in big picture terms you could say that there are two main sources of funding for local government putting aside things like fees and charges and their own

1:53.6

Interest from investments and so on

1:55.9

And those two main sources are council tax and government grant

...

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