£120m funds come with a warning...

OLDHAM council chiefs must keep council tax down the Government warned yesterday as it announced funding of more than £120 million for the borough.

Local Government Minister John Healey said the revenue grant for Oldham for 2009/10 would be £117.5 million — up 4.1 per cent on its current sum.

In addition he announced £121.59 million for 2010/11 — up a further 3.5 per cent.

Mr Healey said that in line with the three-year settlement the overall funding to councils would be £73.1 billion in 2009-10, an increase of 4.2 per cent, and was expected to be £76.4 billion in 2010-11, an increase of 4.4 per cent.

He said: “In spite of significant pressures on the public finances, this confirms the Government’s continuing commitment to local government and continuing investment in the local services people need.”

Mr Healey said he expected councils to find annual 3 per cent efficiency improvements, in line with the rest of the public sector.

Oldham East and Saddleworth MP Phil Woolas said: “Getting more resources for Oldham is a marathon not a sprint. The Local Government funding formula is horrendously complex but as the former minister responsible I am pleased that our efforts have paid off.

“The people of Oldham send me here to bring back the bacon and I am pleased I have delivered.”