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Dateline: 26th August, 2010 Another Cut Coming? London Councils, the umbrella body for local authorities in the capital, is considering shutting down the London Borough Grants Scheme and returning the money to individual councils to spend as they choose. All 32 London councils pay into the scheme, which receives a grant from the European Social Fund, and it supports more than 400 voluntary and arts organisations each year with grants worth a total of £26.4m. Among the arts organisations supported by the scheme, which receive some £3m from the scheme, are the Tricycle Theatre, Tamasha, Clean Break, Oily Cart, the Orange Tree and the Independent Theatre Council. Organisations have received letters from London Councils warning them that funding cannot be guranateed beyond March next year, although the agreements are due to run until late 2012. Steve Bullock, chair of London Councils' grants committee, said, "Circumstances are very different now to when the programme was last reviewed five years ago. In the light of these tough economic times, many boroughs feel that they are in a better place to decide how the money should be spent locally, especially as this will vary from borough to borough. "We will be reviewing the grants scheme over the next few months to make sure that the money is being used in the most effective way for voluntary groups and boroughs alike." A spokesperson for LC added that she was not sure whether local authorities would be obliged to spend it on voluntary sector organisations. The final decision will be made by late November/early December.
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