Austin Macauley 25 June 2014

Stop inventing council spending stats, Government told

The Government has been accused of inventing new measures for council spending to back up ministers’ arguments and gloss over cutbacks.

Clive Betts, chair of the CLG select committee, said ministers had failed to clarify calculations in the Spending Round that showed a 2.3% real terms fall in local government expenditure over the next two years.

Using the DCLG’s agreed measure of council spending power the figure would have been 3.3%, rising to 7.1% if the new Better Care Fund was taken out of the equation.

‘An essential part of select committee scrutiny is testing the Government’s figures,’ said Mr Betts. ‘It is frustrating that the Government has an established measure for presenting local government spending power, but, rather than use that method – I assume because the figure wasn't rosy enough – the prime minister comes up with a "better" figure based on an unexplained new methodology.’

He said the Government had used a range of different figures using different measures. ‘Ministers have to stop quoting whichever figure best suits their argument on any given occasion. Without an agreed single measure of local government spending power there can be no public transparency or open debate on council funding.’

Rather than use the agreed measure for the latest Spending Round, the Treasury ‘chose to invent a new measure of local government spending’, he said.

A spokesperson for the DCLG said: 'The Local Government Settlement for 2014/15 has been published in full since February, which clearly shows how individual councils’ spending power was calculated. This Department has used the same approach for each settlement since 2010.'

Sir Merrick Cockell, chair of the Local Government Association, said the lack of transparency was undermining councils’ efforts to deal with cuts. ‘Councils need to be able to make accurate financial plans based on clear information but recent funding settlements have failed to provide the certainty that councils need.?,' he said.

‘This uncertainty means councils are being forced to assume the worst and plan for it. This is damaging councils' ability to make well-informed financial plans and magnifies the impact of already significant cuts to funding for local services such as caring for the elderly, collecting bins and protecting children.????

‘The current public sector model, with its highly centralised control of budgets and spending priorities, is inefficient. It needs to be replaced with a better and fairer way of funding local authorities which delivers adequate money, distributes it fairly and provides the long-term certainty councils need to plan for future demands. We will continue discussions with government on an agreed definition of local government spending power – which does not include double counting.’

SIGN UP
For your free daily news bulletin
Highways jobs

Community Safety Service Manager

Bristol City Council
£72,878 - £80,741
We are seeking a highly motivated and experienced community safety expert to join our senior leadership team. Bristol
Recuriter: Bristol City Council

Pre-School/Nursery Assistant

Essex County Council
Up to £25959.0000 per annum
Pre-School/Nursery AssistantFixed Term, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Vocational Trainer - Health and Social Care - North Essex

Essex County Council
£29468 - £34668 per annum
Vocational Trainer - Health and Social Care - North EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Social Care Officer

Durham County Council
Grade 6
Durham County Council
Recuriter: Durham County Council

Safeguarding Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
We are seeking a highly motivated and enthusiastic Safeguarding Team Manager to lead an operational team within Adult Services. This pivotal role over Spennymoor
Recuriter: Durham County Council
Linkedin Banner