'Government cuts will cost everyone in Rotherham £66'

The five per cent drop in grants for 2011/12 shows the coalition sacrificing the borough, according to Rotherham MP Denis MacShane.

He said: “The Government has been desperate to hide away the direct cuts that will impact every man, woman and child in Rotherham.

“Now we know the truth. There will be £16.5 million less to help Rotherham cope with the recession and the associated rising poverty.

“David Cameron and Nick Clegg have increased the cash they give to Tory and Lib Dem areas like Dorset, while sacrificing the people of Rotherham.”

The financial settlement announced in December shows a fall of 4.97 per cent in Government funding. Finance officers at Town Hall are still calculating exactly what will be hit as a result.

Dr MacShane has met with council leader Roger Stone and other members to discuss how the reduced budget can be managed.

But he added: “Cameron and Clegg cannot take away £16.5 million without real cuts that will hurt real people and real services that Rotherham depends on.”

Bob Neill, parliamentary under secretary of state for Communities and Local Government, said: “

Rotherham’s central Government grant allocation for 2010/11 is £163.4 million.

“This figure includes formula grants, adjusted to allow a like-for-like comparison with 2011-12, of £139.4 million and specific grants of £24 million.

“The council’s estimated central Government grant allocation for 2011/12 is £146.9 million. This figure includes formula grant of £123.2 million and specific grants, including council tax freeze grant, of £23.75 million.”