Government must close council funding gap

5.48.00pm GMT Thu 5th Feb 2009

MP for Sutton and Cheam, Paul Burstow, has criticised the government for not providing the help which local councils need to make vital investments in their local area.

The Government have placed their commitment to capital investment projects at the heart of their plans to kick-start the UK economy. However some local councils are struggling to fund their capital programmes because of how the recession has affected their budgets.

In a debate this week organised by the Liberal Democrats, the Government's spending plans came under scrutiny and Mr Burstow set out how the government needed to help councils to fill their funding gap so they would be able to begin spending on improvements quickly.

Speaking after the debate Mr Burstow said:

'It's all very well for the Government to say that capital investment will help the economy out of recession but action is needed to ensure this can happen.

'We all want better schools, roads and street lighting but councils have been anticipating receipts which are now smaller than expected or non-existent.

'It's imperative that the Government step in and assist councils - they did not seem so reluctant when it was the bankers who needed help.'

For the full text of Mr Burstow's question go to http://pubs1.tso.parliament.uk/pa/cm200809/cmhansrd/cm090202/debtext/90202-0006.htm#0902025000243