City Conservative leader Councillor Wendy Thompson said that many councils up and down the country had shielded themselves from the likelihood of cuts to the main central government grant by contracting out services and from giving businesses a clearer run to set up in those areas.
"Councils can now keep 50% of all business rates they collect and, in some cases, nearly all of the business rates they collect from new start ups in those areas. That, along with the sensible outsourcing of certain services, has made those councils much less vulnerable to cuts in grant. This is why we set such great store by urging the Council to do more to encourage the growth of local businesses."
Councillor Thompson added that the push towards devolution of power in England would mean that councils in all areas would need to become much more self-reliant in future. "This will apply to the urban centres like us in Wolverhampton as well as to the leafy suburbs or rural areas. If we want these powers devolved to us from Westminster, we are going to have to show that we are innovative in raising income locally."
Councillor Thompson further stated that government funding for the 10% most deprived areas in England was still 40% higher than for the 10% least deprived areas. "On top of this, Councils are receiving funding in order to freeze Council Tax bills for the fifth year running. It remains to be seen whether Wolverhampton will take part in the freeze this year."