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Bromsgrove District Council will have to find more than £3m following news that central government funding could be axed.

The Council was expecting the Revenue Support Grant from central Government to be reduced to zero by the end of Parliament in 2019/20 as previously announced. But the recently revealed provisional settlement sees Bromsgrove set to lose all of its grant in 2016/17.

Because of proposed new funding allocations the Council will actually have to give contributions to the Government the following year until 19/20. This sees a total loss over the four years of £3.215m compared to original estimations.

On top of this news, Government are consulting on proposals to change New Homes Bonus payments. Should these proposals be implemented this could further compound the pressures on the Council by £2.259m.

Cllr Geoff Denaro, whose portfolio covers Finance, said: “For the last six years we have weathered the turbulent financial climate by working innovatively through Shared Services and Business transformation to ensure our frontline services to residents are not axed.

“This is another financial blow which we were expecting – but not yet - and our main priority is still to protect the services which are valued by our residents.

“So we are bringing our plans forward and, although it will be a difficult process, we are working together to set a realistic budget for the next four years. In light of the significant reduction in the settlement this may include reviewing decisions we have already made.”