01 March 2010
Source: LocalGov.co.uk ()

Denham points to efficiencies in the face of cuts


Matt Hobley

Communities secretary John Denham has urged councils to focus on efficiencies rather than cuts in the wake of research by BBC local radio, which highlighted funding pressures in the next financial cycle.

Speaking on the channel’s Today programme this week, Mr Denham refused to be drawn on a figure of the impending cuts post 2011, but stressed the need for councils to talk to the local delivery agencies in their areas and find ways of sharing buildings and staff.

Communities secretary John Denham
John Denham said councils focussing on efficiencies now would be better prepared for any spending cut
The BBC survey is based on answers from 49 councils with a combined workforce of 256,000.This has enabled the corporation to suggest a tentative cut of 10%, equating to at least 25,000 council jobs in England. Response was too low from Scotland, Wales and Northern Ireland to provide robust data, and the survey covered top and single tier councils only.

However, while understanding the survey’s caution, the LSE’s Tony Travers said the number of job losses could reach 100,000.

’To minimise the impact on the public would require massive efficiencies in all services, higher charges for many and the sharing of back-office staff with other public bodies.’

Councils across the UK say jobs and services will have to be cut if, as they expect, funding from central government is reduced. Services such as libraries and nurseries also face cuts as councils battle the ‘perfect storm’ of recession - falling revenues and higher demand.

More than 70% of councils in England that responded to the survey predicted spending cuts of between 5% and 20%.

Roads, libraries, the arts and leisure appear most at risk of cutbacks. Children's social services, services for the homeless and planning appear to be safest.

The Local Government Association said town halls had been battling the effects of recession for more than a year.

‘Sources of income have dropped sharply at a time when more and more people are turning to councils to help them through tough times,’ said chair Dame Margaret Eaton.

‘Low interest rates mean councils are much less able to rely on their savings, plummeting house and land prices have hit hard and income from leisure centres and a range of other services has fallen.’

She said tough decisions would have to be taken, but 'councils will do everything they can' to protect front-line services.

Many of the councils that responded to the BBC survey were reluctant to forecast job losses.

Mr Denham added that Total Place had shown there were ‘large areas of duplication’ and councils should deal with efficiencies first. Actual figures would depend on factors such as unemployment levels and taxation.

The BBC survey coincided with the publication of the Government's Putting the Frontline First Task Force report.

But he did sound a cautionary note: ‘Councils should not be marking time now… things are going to be tight and people will have to plan for that, but the actual figures are yet to be determined.’

GMB National Secretary Brian Strutton was alarmed by the findings: 'The BBC survey reported today shows that the trend over the next year is set to continue with spending on children’s services set to fall 10%, on adult services by 20%, on the environment by 30% and on highways by 80%. These are real front line services and cutting them will increase the likelihood of more Baby P’s, more elderly people not looked after, fewer bin collections and roads in even worse condition than they are now.'

Click here to view the BBC's Facing the Cuts map



Your comments

80% cut in Highways?....after 80% of the Highways have fallen to pieces after the most devastating winter ive ever known...oh dear !!

Carlos-the-Camera, Added: Tuesday, 2 March 2010 01:23 PM



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