Lobbying windfall will be used to make further efficiencies

Croydon's continuing lobbying for a 'fair deal' has paid off with news of an unexpected £1 million government grant paid under the Local Authority Business Growth Initiative (LABGI) scheme.

The £1,079,000 contribution announced this month has been accompanied by a further £86,000 of backdated payments for earlier years making a total windfall of £1.16 million.

Securing a reasonable share of the LABGI  grant was one of the specific issues that council representatives raised with local government minister John Healey during a 'fair deal' meeting earlier this year.

The payment also comes as recognition for Croydon Council's efforts to encourage business development in the borough.  A key feature of the LABGI scheme is to let councils reap some of the financial benefits that flow from economic growth.

The unbudgeted bonus will be put to good use with the money being invested in efficiency schemes intended to generate further long term savings thereby reducing pressures on front line services and helping to ensure council tax increases remain below 4%.

Said cabinet member for resources and customer services, Councillor Gavin Barwell:  "We are very pleased to benefit from a scheme that offers a financial incentive to councils that promote economic growth.  The payment is an entirely deserved reward for Croydon's success in supporting local enterprise and job-generation.  Given the intensity of our lobbying for a fairer financial deal from the Government, getting this grant is a good result.  It also underlines the importance of the council continuing to lobby for fairer financial treatment from government.

"We're now planning to make the money go even further by using it to pump prime cost-saving initiatives in our Release' efficiencies programme."

Council and democracy