Funding for programmes including the Working Neighbourhood Fund, Local Enterprise Growth Initiative and Prevent will be cut as part of local government’s £1.166bn contribution towards the overall £6.2bn deficit.

The three programmes will face grant cuts totalling nearly £75m between them, the Department for Communities and Local Government (DCLG) has revealed. Other programmes to feel the pinch include Housing Market Renewal (£50m), Connecting Communities (£19.1m) and Kickstart (£5m). The Gypsy and Traveller site grant will also drop by £30m.

The DCLG will cut 10% of the operational costs of its departmental and arms length bodies to pay for the £1.166bn savings the new government wants it to make in 2010/11. A statement on the DCLG website said the £29bn general grant will not be reduced to ‘ensure that key frontline services can be protected and prevent council tax rises’.

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