he government has been realized the money was missing at
criticized after wrongly the start of 2008.
awarding £2.5 million to
Simon Tagg, leader of
the wrong Newcastle. Newcastle Borough Council, was
Although one Newcastle is a quiet shocked by the revelations. He
town in Staffordshire with a said: “I am shocked that this has
population of 74,000 and one is a actually happened, that the
bustling city in the North with government has got the two
over 270,000 residents, the Newcastle’s mixed up. I think
similar place names confused it's extraordinary and shocking.
council officials enough to make I'm flabbergasted.”
the foolish mix-up.
Councilor Tagg said the first
The massive cash reward was he had heard of the government’s
awarded to Newcastle City Council error was when the borough
for promoting local firms, but it council received a letter last
was given to the smaller week, which discussed repayment
Newcastle Borough Council methods. However, Mr Tagg stated
instead. In fact, Newcastle that the borough council were
Borough Council should have been reluctant to hand the amount
awarded just £600,000 for the back, as it was accepted in good
incentive, which gives councils faith. He said: “The council
back some business tax paid by accepted this money in good
local firms, in exchange for faith. It was a large amount, but
promoting them. The initiative we assumed it was in recognition
saw the government award around of the work we’ve done to
£126 million to 270 councils in encourage business growth in the
England in 2005. However, because borough. We want the Government
of the complexity of the reward to look at its figures again. If
system, Newcastle upon Tyne City we do have to pay it back, it
Council said that they only should be over 20 years. We can’t
hand over £2m just like a bustling city in the North with
that.” over 270,000 residents, the
The Department for Communities similar place names confused
and Local Government simply council officials enough to make
described their mistake as a the foolish mix-up.
“regrettable error”. A
The massive cash reward was
spokesperson said: “We are awarded to Newcastle City Council
working closely with the councils for promoting local firms, but it
involved, and are taking steps to was given to the smaller
ensure this does not happen Newcastle Borough Council
again.”
instead. In fact, Newcastle
The council will repay the Borough Council should have been
missing money to Newcastle City awarded just £600,000 for the
Council, who is expected to incentive, which gives councils
invest it in council services back some business tax paid by
such as improvements to services local firms, in exchange for
for the elderly, play schemes and promoting them. The initiative
youth services. However, it is saw the government award around
unlikely that the amount will be £126 million to 270 councils in
used to reduce April’s council England in 2005. However, because
tax increase in the city, which of the complexity of the reward
is thought to amount to around system, Newcastle upon Tyne City
3.9%.
Council said that they only
The government has been realized the money was missing at
criticized after wrongly awarding the start of 2008.
£2.5 million to the wrong
Simon Tagg, leader of
Newcastle.
Newcastle Borough Council, was
Although one Newcastle is a shocked by the revelations. He
quiet town in Staffordshire with said: “I am shocked that this has
a population of 74,000 and one is actually happened, that the
government has got the two working closely with the councils
Newcastle’s mixed up. I think involved, and are taking steps to
it's extraordinary and shocking. ensure this does not happen
I'm flabbergasted.” again.”
Councillor Tagg said the first
The council will repay the
he had heard of the government’s missing money to Newcastle City
error was when the borough Council, who is expected to
council received a letter last invest it in council services
week, which discussed repayment such as improvements to services
methods. However, Mr Tagg stated for the elderly, play schemes and
that the borough council were youth services. However, it is
reluctant to hand the amount unlikely that the amount will be
back, as it was accepted in good used to reduce April’s council
faith. He said: “The council tax increase in the city, which
accepted this money in good is thought to amount to around
faith. It was a large amount, but 3.9%.
we assumed it was in recognition
Source:
of the work we’ve done to IC Newcastle
encourage business growth in the BBC
borough. We want the Government
to look at its figures again. If
spokesperson said: “We are align="center">
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