Dear Sir or Madam,

The recent problems with Icelandic Banks indicates that English
Council's have very high levels of reserves. The reserves are at a
level where it appears that they have sufficient funds not to
charge Council Tax for a number of years and/or engage in a massive
public works programme. It appears reasonably clear from the level
of reserves held by Council's that they have been over-taxing
citizens for many years. The reserves also appear to have
contributed to destabilisation of the global banking system due to
their level.

What documents does the DCLG as the organisation responsible for
providing revenue support to Council's hold - identifying the level
of reserves that should be held by Council's, and what documents
does DCLG hold identifying that the level of reserves held by
Council's needs to be reduced. Specifically what guidance has DCLG
provided to both Council's and Ministers identifying that they
should use their reserves for public works and Council Tax
reductions.. and not use them to fund management of Council of Tax
for party political purposes and/or reduce exposure of their staff
to mismanagement of the Council's by members of local political
organisations.

Further what discussions has DCLG held with Treasury identifying
that the reserves held by Council's are excessive, and that the
reserves held by Council's could be used to support the national
economy.

Yours faithfully,

Stuart Hardwicke Carruthers

Dear Mr Carruthers,
Thank you for the freedom of information request you sent on Wednesday 29th October to Communities and Local Government, regarding local authority reserves. This is to acknowledge receipt. We will reply in due course.

Yours sincerely

Sarah Blackman

Local Government Capital Finance
Communities and Local Government

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http://www.opsi.gov.uk/acts/acts2003/en/...
http://www.opsi.gov.uk/Acts/acts2003/ukp...

Reference F0002796.

Dear Mr Carruthers,

I am writing in response to your request for information of 29 October about council reserves.

I can confirm that Communities and Local Government does hold the information that you have requested and that I am able to provide you with the following information.

You ask what documents does the Department hold identifying the level of reserves that should be held by Councils.

The relevant legislation is the Local Government Act 2003. Attached are links (top link is to the explanatory note and the second one is to the Act itself). Section 25 of the Act deals with reserves.

The level of reserves is a matter for each local authority. The Department does not advise local authorities on such matters. As paragraph 43 of the explanatory note explains, local authorities must set a level of reserves in consideration of the risks and uncertainties that might force them to spend more on their services than they planned for at the beginning of each financial year.

Communities and Local Government as an organisation aims to be as helpful as possible in the way it deals with requests for information under the Freedom of Information Act 2000 and the Environmental Information Regulations 2004. If, however, you are not satisfied with the way in which your request has been handled or the outcome, you may request an internal review within two calendar months of the date of this letter. Information about the Department's review procedures and how to apply for an internal review of your case is contained [on the Department's website at http://www.communities.gov.uk/documents/...

This also explains your right to apply directly to the Information Commissioner for a decision in the event that you remain dissatisfied following the authority's review.

If you have any queries about this email, please contact me. Please remember to quote the reference number above in any future communications.

Yours sincerely

Sarah Blackman

Local Government Capital Finance
Communities and Local Government

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Dear Sir or Madam,

Please pass this on to the person who conducts Freedom of
Information reviews.

I am writing to request an internal review of Department for
Communities and Local Government's handling of my FOI request
'Council Reserves'.

A full history of my FOI request and all correspondence is
available on the Internet at this address:
http://www.whatdotheyknow.com/request/co...

I particularly want copies of guidance that DCLG provides - as it
is very clear that grant's made to Council's can be reduced..
and/or Council's are in a position to lower Council Tax. They
appear to have the funds required for a massive public works
programme.

Yours sincerely,

Stuart Hardwicke CARRUTHERS

Dear Mr Carruthers

REQUEST FOR INTERNAL REVIEW

Thank you for your email 10th December 08 7.06pm, which was received by me 15th November 08 in which you seek a review of the response provided by Communities and Local Government to your request for information under the Freedom of Information Act.

The review has been allocated and will be considered Aunder the Department's internal review procedures. A full re-evaluation of your request will be undertaken.

I will write to you again shortly to advise you of the date by which you should expect to hear the outcome of the review.

Yours sincerely

Juliet Tomlin

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Dear Mr Carruthers

You asked for an internal review of the response by Communities and Local Government to your email of 2 October 2007, in which you asked to be advised of documents held by Communities and Local Government which identified the level of reserves that should be held by Councils, and guidance that identified when the level of reserves held by Councils needs to be reduced. Specifically, you requested what guidance Communities and Local Government has provided to both Council's and Ministers identifying that they should use their reserves for public works and Council Tax reductions and not use them to fund management of Council of Tax for party political purposes and/or reduce exposure of their staff to mismanagement of the Council's by members of local political organisations. You also requested to be advised of any discussions held with Treasury identifying that the reserves held by Council's are excessive, and that the reserves held by Council's could be used to support the national economy.

Your request has been passed to me as one of Communities and Local Government internal review officers.

I have now carefully reviewed the papers. I note that Sarah Blackman's email to you of 26 November 2008, in which she provided you with a link to the relevant legislation and explanatory notes, advises you that the level of reserves is a matter for each local authority and that Communities and Local Government does not advise local authorities on such matters. It follows from this that that there are no documents held by Communities and Local Government which identify whether the level of reserves held by Councils need to be reduced, and that there is no guidance provided to both Council's and Ministers by Communities and Local Government which identifies that they should use their reserves for public works and Council Tax reductions or for any other purpose. There have been no discussions between Communities and Local Government and Treasury identifying that the reserves held by Council's are excessive, and that the reserves held by Council's could be used to support the national economy.

This has led me to conclude that the original decision, communicated to by e-mail on 26 November 2008 was correct.

If you are not satisfied with my decision, you may write to the Information Commissioner asking him to decide whether Communities and Local Government have complied with their obligations under the Act. You should direct any such appeal to:

The Office of the Information Commissioner
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

In your email of 10 December requesting this review, you raised the issue of grants to local authorities. This is a separate issue to local authority reserves, and warrants the making of a new request under the terms of the Freedom of Information Act. Accordingly I invite you to submit a new FOI request which should be addressed to [email address]

Yours sincerely,

Tony Evans
Tony Evans
Corporate Collaboration
Knowledge Management Division
Department of Communities & Local Government
Zone 4/D9
Ashdown House
123 Victoria Street
London SW1E 6DE
Tel: 0207 944 4936
[email address]

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