Heather Jameson 08 July 2015

Budget 2015: Councils spared further cuts

Budget 2015: Councils spared further cuts image

The Conservative government has put devolution at the heart of its Summer budget with the announcement of extra powers for the Greater Manchester Combined Authority.

Under the plans laid out by chancellor George Osborne, the Devo Manc deal has been extended further, while the Chancellor added he was in negotiation with other areas to devolve powers and responsibility in exchange for introducing directly elected mayors.

The Local Government Association (LGA) has welcomed the budget for not including extra in-year cuts for the sector. LGA chairman, Cllr Gary Porter, said: ‘It is right that the Chancellor has not used his Summer Budget to further reduce in-year local government funding. Councils already have to find £2.5bn in savings this financial year and these are proving the most difficult savings to find yet.

‘Councils will now be looking to the Spending Review in the autumn which will decide the future of our public services over the next decade.’ In an announcement he badged as ‘a budget for working people’ Mr Osborne said: ‘Our long-term economic plan is working’. He claimed there would be a budget surplus by 2019-20.

Measures unveiled in the budget speech included cuts to the welfare budget in a bid to reach the government target of £12bn welfare savings

In the first full conservative budget since 1996, Mr Osborne said he wanted to move Britain from ‘a low wage, high tax, high welfare economy, to a higher wage, lower tax, lower welfare society’.

He told parliament he would introduce a new living wage of £9 per hour.

Mr Osborne said: ‘Britain deserves a pay rise and Britain is getting a pay rise. I am today introducing a new National Living Wage. We’ve set it to reach £9 an hour by 2020. The new National Living Wage will be compulsory. Working people aged 25 and over will receive it. It will start next April, at the rate of £7.20.’

The chancellor claimed the OBR had calculated the cost to business would be 1% of corporate profits: ‘To offset that I have cut corporation tax to 18%. To help small firms I will go further now and cut their national insurance contributions.

‘From 2016 our new Employment Allowance, will now be increased by 50% to £3,000. That means a firm will be able to employ four people full time on the new National Living Wage and pay no national insurance at all.

‘In total it’s expected that 6 million people will see their pay increase as a consequence.

'And taken together with all the welfare savings and the tax cuts in this Budget, it means that a typical family where someone is working full time on the minimum wage will be better off.’

Photo: © Conservatives/Flickr

Overcoming the barriers to Commercial Card use image

Overcoming the barriers to Commercial Card use

Want to reap the benefits of Commercial Cards but coming up against some challenges? James Sykes, Head of Commercial Cards, Lloyds Bank and David Legg, Head of Corporate Card Products, Lloyds Bank, discuss how the payments industry is helping organisations unlock their true value.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Project Manager

Leicestershire County Council
Up to £50,823 per annum
The role of this post is to oversee the project management, development and implementation of the County Council’s Major Transport Projects.. Leicestershire
Recuriter: Leicestershire County Council

Programme and Change Delivery Manager (Spatial Planning and Urban Design)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,833 - £53,115 Depending on skills and experience
Are you a change delivery manager with expertise in England’s local government spatial planning and urban design sector? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Early Years Practitioner

The Royal Borough of Kensington & Chelsea Council
£26,544 - £30,618 per annum pro rata
This is a diverse area and we have high aspirations for all our children, starting with... Kensington and Chelsea, London (Greater)
Recuriter: The Royal Borough of Kensington & Chelsea Council

Programme Manager - Association of Directors of Children’s Services

City of York Council
£50,000 to £60,000 pa
This role will help to shape an annual SLI work plan and variously oversee, facilitate, commission or directly deliver and... York, North Yorkshire
Recuriter: City of York Council

School Wellbeing Worker

City of York Council
£27,614 to £30,602 per annum
The role will involve providing schools with consultation and advice, training, direct work in... York, North Yorkshire
Recuriter: City of York Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue