Council leader attacks small grants

A grant scheme for community groups and good causes run by a Staffordshire council is so inefficient it is costing almost £50 for every £50 given away, the council leader says.

Councillor Neil Stanley spoke about Cannock Chase Council's meembers grant aid scheme, which allows councillors to make small donations to community groups in their ward. The council is considering scrapping it, and Councillor Stanley said the scheme did not offer value for money when the management costs were taken into consideration.

"The scale and actual management costs of administrating it are so large by comparison to the amount of money available to be made open for bids from individuals and organisations that it is not helped within the existing scheme when members keep coming up with lots and lots of very small grants of £50.

"It costs almost £50 in administration costs to give away £50.

"Unfortunately, the scheme becomes very inefficient on the basis of management costs and that is a primary reason why we are looking at not continuing with the scheme."

He said a similar Staffordshire County Council scheme may still be used by individuals and organisations searching for a grant, and county councillors have £10,000 at their disposal.

On Thursday the council's ruling cabinet on Thursday, councillors approved a total of £5,711 worth of grants including £961 to Etchinghill Women's Institute by Councillor Danny Davies for computer equipment, £500 from Councillor John Kraujalis to buy a mountain bike for a police officer.

The council is looking to make a raft of budget cuts in a bid to save £870,000 and has already announced it may have to axe 27 jobs.

Councillors approved the grant aid scheme in August 2007, but it could well be consigned to history.