23 October 2012

Council leaders warn further cuts ‘certain’


James Evison

Further council cuts are ‘absolutely certain’, local authority leaders in the north of England have warned.

The news comes ahead of the end of the local government grant settlement next March, with the Government currently consulting on new financing arrangements beyond April 2013.

Local authorities are due to discover the settlement in December, but it is widely anticipated that a further two years of spending cuts will be required for council budgets.

Preston Council deputy leader, Cllr John Swindells, claimed the council have ‘probably cut as close to the bone as we can’ – and any further savings will result in services being affected ‘deeply’.

Durham CC leader, Simon Henig, echoed the statement, claiming the impact on vulnerable people and care budgets was ‘accelerating’ as a result of the budget cuts, and had to find in excess of £40m for the next few years.

North Yorkshire also has to find budget cuts of more than £48m having already implemented plans for a £69m reduction in costs at the beginning of this year.

The Local Government Association is warning local authorities will only be able to provide basic services at the end of the decade should the budget shortfall continue – and local authorities would end up £26.5bn in the red.

Last week Lewisham LBC mayor, Sir Steve Bullock, said it could ‘get a whole lot worse’ following an announcement the local authority planned £28.3m in cuts from next April.





Your comments

Yes Mr. MacDonald-Wallace even the IMF understand the damage done to the private sector by cuts to both revenue and capital expenditure (latter reduced by 40%). Stagnant or declining economic activity means both reduced tax receipts and increased transfer (welfare) payments and even if the deficit is reduced it is at large cost to the economy - present and future, private and public. Mr Hambly you are right. Cuts are 80% ideologically motivated.

Patrick Newman, ex local government, Stevenage, Added: Tuesday, 23 October 2012 01:57 PM

Interesting to read the MJ article a few lines down, "Councils are failing to make ?fair? payments to care home operators...". Cutting funding to the public sector is cutting business in the private sector too. That golden thread may take time for the Treasury to understand.

Dominic Macdonald-WALLACE, Shared Service Architecture Ltd, Added: Tuesday, 23 October 2012 01:11 PM

What is certain is that these cuts to funding are designed directly to force the destruction of jobs and services and is part of a plan to destroy the concept that there is such an entity as society. It is clear that the destruction of the public sector is priority number one. The future for ex public sector workers is workfare or McDonalds, since the Government clearly wants low paid low cost workers not what we currently have. I would suggest that the pain to come has been underestimated.

David Hambly, Added: Tuesday, 23 October 2012 11:08 AM



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