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Spending Review 2010 - Corporate - Department for Communities and Local Government
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Spending Review 2010

Through radical reform, rationalising programmes and devolution of funding and new flexibility for local government, the Department for Communities and Local Government will make significant savings, while delivering up to 150,000 new affordable homes over the Spending Review and protecting funding for the most vulnerable. The Chancellor has announced that over the course of the Spending Review period, the Department's overall resource will reduce by 33 per cent in real terms by 2014-15. Alongside this, the Department is devolving over £6.7 billion to local government over the period. Capital spending will reduce by 74 per cent.

As part of our duty to consider the equality impacts of public spending plans, we will publish Equality Impact Assessments as policy announcements are made.

Spending Review for grants to Local Government

The Spending Review delivers a radical reform programme which gives local government unprecedented freedoms and flexibilities to provide the key frontline services people rely on and make significant savings.

Overall, revenue funding from Government will reduce by 26 per cent in real terms between 2010-11 and 2014-15 - excluding schools, fire and police.

The Government is:

  • ending ringfencing of all revenue grants from 2011-12, except simplified school grants, and a new public health grant from 2013
  • rolling around £4 billion of grants in 2010-11 into formula grant and reducing core revenue grants for local government from over 90 to fewer than 10.

The Government is also taking specific steps to protect vulnerable people. This includes an additional £2 billion of funding to support adult social care. As part of this £2 billion there will be investment, amounting to £1 billion per year by 2014-15, through the NHS to break down the barriers between health and social care.

The Secretary of State has written to all Local Authority Leaders in England setting out the implications of the Spending Review announcement for local government, the Housing Minister Grant Shapps has written to housing sector representatives setting out the settlement for government housing expenditure and the Fire Minister Bob Neill has written to Fire Chairs and Chiefs, setting out the implications of the Spending Review announcement on the Fire and Rescue Service. These letters are available to download below.

Full details of the Spending Review are available on the HM Treasury website via the link on the right under 'On other sites'.

Spending Review Equality Impact Assessments

The Department has now published six full Equality Impact Assessments, where firm decisions were announced as part of the Spending Review. These can be found at the links at the bottom of the page (see related publications).

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