Is Wokingham Really the Worst Funded Local Authority in the Country?

It may have escaped your attention, but it’s election time. Across large parts of the country people will be delighted to have Eastenders and Coronation Street interrupted by a knock at the door, a local politician of one colour or another who you won’t have seen since the last election tell you a whole load of reasons why you should vote for them in a couple of weeks.

Around these parts one of the favourite claims of Wokingham Borough Councillors from the ruling Conservative group is that Wokingham is the poorest funded council in the country. Indeed the claim has been made so frequently that it’s made the BBC news site.

It has to be said that when I tell people outside the borough what is said reactions range from regarding it as a ridiculous statement, to people on the receiving end of very real cuts to council services regarding it as a pretty crass and insensitive statement for leaders of the council in one of the richest and least deprived areas of the country to be moaning about money. Much the same reaction as to a banker moaning that his bonus isn’t big enough, or a millionaire moaning about the size of his tax bill. But the question is, is it actually true?

To answer the question we have to look at how local government is funded. Broadly speaking a local council gets money from two sources, the first is the money it raises through the council tax. This is collected in a banded scheme whereby each property in the country is allocated to a band between A and H, based on the capital value of the property in 1991, and the tax bill graded up or down so higher band properties pay more. There is a Wikipedia article that explains how the system works. The second source is from central government and consists of business rates and a block grant, the level of which is set by central government as explained in this plain English guide. Interestingly the example authority used by the document is Wokingham, and the document makes clear that needy areas such as Hackney deliberately get more funding via the grant than well off areas such as Wokingham.

So if you look purely the government grant component of the council finances, Wokingham does get the smallest grant, however as the governments own document explains Wokingham as one of the least deprived areas in the country, and with a well off population and high value housing has more resources of it’s own.

Tories would be the first to highlight benefit scroungers claiming money when they aren’t entitled, and yet our local Tories regularly bleat about poorly funded Wokingham. Whilst all local authorities are seeing real cuts in funding, the Joseph Rowntree Foundation lays out the effect of cuts on Wokingham in table 2 – a tiny cut in spending power compared to places like Liverpool and Manchester.

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