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ALG HAS A FIVE POINT PLAN FOR KENNETH CLARKE

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The Association of London Government says the chancellor should consider the needs of the capital in his budget tod...
The Association of London Government says the chancellor should consider the needs of the capital in his budget today.

In a five point plan, the association calls for:

- no hidden tax rises - The ALG opposes any moves, as speculated on in the press, to shift the tax burden to council tax to enable income tax cuts. The ALG says that already almost half of the £2.8bn contributed by London business rate payers is redistributed to councils outside London

- increased revenue support grant to London councils by £380m

- the go ahead for CrossRail and Thameslink 2000, and a rise in funds for London Underground

- allowing councils to borrow an extra £167m to invest in schools - representing half of what is required. The ALG says that London authorities were allowed to borrow only 15% of what they required for school building and repairs last year

- letting councils and housing associations spend accumulated capital receipts. The ALG says that London has the highest number of people living rough and over half of the country's homeless households in temporary accommodation while approaching £1bn is held in capital receipts by London councils.

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