A council says it has been short-changed out of nearly £1m in grant funding claiming mandarins used incorrect figures to calculate its allocation.
The Isle of Wight Council said the wrong figures were used for its share of concessionary travel and local transport funding for the current financial year, and this meant the council’s baseline, on which future years funding is allocated, was incorrect.
Council leader David Pugh (Con) told LGC that, because ministers had underestimated the council’s 2010-11 funding, the assumptions had resulted in a miscalculation of its spending power and the subsequent amount of damping overstated by some £898,000.
The government considers the council’s total adjusted formula grant for the current financial year to be £72.552m, when it is £1.45m more – at £74.002m, said Cllr Pugh.
In a letter to junior local government minister Bob Neill, he said: “We consider that this significant adjustment…has had an impact on the amount of the damping proposed for 2011/12.
“Using the same factors included in the model for calculating the impact of floor damping we calculate that the damping adjustment is overstated by some £898,000,” he added.