Growth funding cuts confirmed

16 December 2009

Issued by Cambridgeshire County Council.

Plans to deliver sustainable new communities across Cambridgeshire have suffered a massive blow after confirmation was received that a major funding stream has been cut by 43%.

In July, Communities and Local Government (CLG) ministers sent a letter to Councillor Jill Tuck, Leader of Cambridgeshire County Council, outlining its intentions to reduce the County's Housing Growth Fund (HGF) capital allocation for 2010-11 by almost £6 million. Yesterday (Tues, 15th December), following on from a short consultation period, we received confirmation that the full £6 million cut will be made. Across the country, all Housing Growth Fund allocations have received the same level of funding cuts.

The fund, administered by Cambridgeshire Horizons, is used to support the delivery of much needed new homes and infrastructure across the county. The reduction of 43% will undoubtedly now delay a number of important projects.

Councillor Jill Tuck, leader of Cambridgeshire County Council, said: "I am furious at the Government's attitude to funding Cambridgeshire as once again we are the poor relation. Due to the economic power of Cambridgeshire it has been shown we can help drive the UK out of the recession and onto prosperity. But it seems the Government are more concerned with handing out money to Labour heartlands and trying to win an election. In a time when fat cat bankers are benefitting from bonuses paid for by tax payers and public services Government should be looking at ways to re-address the balance not rob us of more money. Cambridgeshire is the fastest growing County in the country and it is vital that Government invests in us so we can properly manage this growth."

Sir David Trippier, Chairman of Cambridgeshire Horizons, said: "We are very annoyed that the Government have confirmed their proposals to cut Cambridgeshire's Housing Growth Fund capital allocation for 2010-11 by £6 million, and that they have not been swayed by the very serious points we made in response to the consultation.

"Cambridgeshire has an excellent track record in helping deliver government targets for new homes, and facilities, and the 43% cut to our funding allocation for next year will have a significant impact on our ability to deliver sustainable new communities. Much of the money had already been earmarked for a range of vital schemes which are due to deliver significant numbers of new homes over the coming years, and we must continue to work hard with partners to re-evaluate these proposals."

Aware that a cut in Government funding was likely, and to minimise the potential impact, the local authorities and Horizons have been working hard together to find a way forward to ensure the continued delivery of sustainable communities to meet the proven demand in the local area. Now that the cut has been confirmed the partnership will finalise these plans.

In assessing how to tackle the cut, projects have been assessed against the original criteria outlined at the March 2009 Horizons Board meeting, i.e. the extent to which projects contribute to:

• Actual delivery of new homes
• Delivery of sustainable infrastructure essential for development
• Future sustainable development to ensure medium term growth objectives are met

In addition to these original objectives, two further criteria were added once the Government's proposed cuts were announced:

• Unavoidable commitments already made
• Potential to leverage external funds

Additional quotes from Cambridgeshire Local Authority Leaders
Cllr Sian Reid, Executive Councillor for Climate Change and Growth at Cambridge City Council
"This is a ludicrous decision from the Government - wanting sustainable and thriving new communities without putting their money where their mouth is.  The funding that the Government has taken away is sure to deprive Cambridge residents of important affordable housing and infrastructure projects."

Cllr David Bard, Portfolio Holder for New Communities at South Cambridgeshire District Council
"This is an extremely disappointing announcement if not entirely unexpected. As a result of it, South Cambridgeshire, together with Cambridgeshire Horizons and its partner authorities will have to make some difficult decisions and unless funding is made available from other agencies, the outcome will inevitably be a reduced ability to deliver housing. The ultimate losers will again be the people of South Cambridgeshire already suffering from the lack of availability of decent affordable housing."

Cllr Fred Brown, Leader of East Cambridgeshire District Council
"Yet again the Government has managed to ensure areas which could lead this country out of recession are the ones who they think can survive without their support. While none of us really expected to receive the full allocation of funding you do have to wonder what the county and East Cambridgeshire has done to be so disadvantaged and why the Government seem so reluctant to invest in our continuing success."

Councillor Kit Owen, Fenland District Council's Portfolio Holder responsible for Housing Strategy
"This cut is absolutely disastrous for Cambridgeshire as a whole and for Fenland in particular at a time when we have an increasing population coming into the district for whom accommodation has to be found."

Malcolm Sharp, Director of Environmental and Community Services, Huntingdonshire District Council
"We are very disappointed to hear that the government did not take into consideration the concerns that we expressed in terms of the growth funding. We will find it difficult to build the infrastructure to match the growth. However, we are confident that some priority schemes, like the link road in Huntingdon will still go ahead."