The government has today (6 December) announced the funding settlement for City of York Council for the next three years.

The provisional figures show that the total grant the council receives will increase by 3.63 per cent (£1.39m) in 2008/09, 2.75 per cent (£1.17m) in 2009/2010 and 2.56 per cent (£1.11m) in 2010/2011. This takes the total funding York will receive in 2008/09 to £42.36m.

However, the council is also having to 'support' other local authorities by over £1m per year. This is funding that the government recognises should come to York, but gives to councils which it thinks are losing out in the funding settlement (called 'damping'). The total loss over the three year funding period is £3.3m.

The funding announcement also covers the level of grant that the government will give to local authorities to cover the changes in the rules regarding concessionary fares. From April 2008, residents aged 60 and over will be able to travel anywhere in the country on the local bus network, free of charge. However as the cost will have to be met by the local authority of the area where they begin their journey this had left York facing a significant shortfall in funding that it would need to meet. To help in meeting such costs the government has proposed giving York £1.112m in 2008/09, increasing to £1.17m by 2010/2011. However, the council will need to spend an additional £400,000, over and above the government grant, in 2008/09 alone.

Local authorities will be able to put comments to the government about the provisional figures over the next few weeks.