Mistaken government tells cheshire: You owe us £1.2million (From Warrington Guardian)

Mistaken government tells cheshire: You owe us £1.2million

THE GOVERNMENT has ordered Cheshire County Council to hand back £1.2 million of funding after it miscalculated the population figures for the 2001 Census.

The figures were drawn up by the Government to determine how much Cheshire was given under the Local Government Finance Settlement for 2003/4 for the provision of vital services

But Cheshire has already spent the money.

"Whitehall made the mistake in the first place and should pay the price," said Clr Gretta Cousins, an executive finance member.

This week it emerged that the £1.2 million would be deducted from next year's settlement.

But councillors must wait until tomorrow (Thursday) to find out how much they will get to spend for 2005/6.

Cheshire's £1.2 million will be handed back to other areas of the UK where the population was underestimated.

"Being subjected to a £1.2 million smash and grab raid by the Government to pay for their own mistake is hardly helpful to anyone at this moment in time - particularly the council taxpayers," she said.

She added: "This means that the council has to try to manage its budget which will be incredibly tight. It seems that we are not allowed to make any mistakes but they are."

It is not known how Cheshire will cope after handing back the money. But it could mean an increase in council tax rates or cutting essential services. "We do not want people to have to pay for this mistake," said Clr Cousins.

Cheshire is not alone in its plight

The Office of the Deputy Prime Minister has also told other county councils that they owe cash totalling £25.9 million.