Michael Burton 04 March 2009

Radical shift needed to avoid ‘decade of cuts’

Councils face a decade of cuts due to zero and minus grant settlements, unless there is a radical shift in public funding allocation, leading experts have warned.
Stephen Hughes, chief executive of Birmingham City Council, told an MJ local powers conference his city received £7.2bn in public spending from various Whitehall departments. But he claimed better outcomes could be achieved by allocating from a single pot locally by need, rather than by structures.
He said: ‘If you were creating such a system, you wouldn’t start from here. The alternative, to go back to silos, means we’ll have a decade of cuts.’
The Leadership Centre last year, in its Calling Cumbria programme, examined whether the county’s £7bn of public money was being allocated efficiently under the current system.
London School of Economics director, Tony Travers, told The MJ conference, local government was ‘strangely isolated’ from the downturn because its budgets had been previously fixed in the CSR, and was centrally funded. Had councils relied on local income base, such as in the US, they would have been hit by the recession.
However, Mr Travers predicted ministers were likely to revisit budgets in 2010/11, the last year of the CSR, because low inflation had made the settlement for councils generous.
Thereafter, grant settlements were likely to be 0% and, in some cases, a minus figure. Overall, public spending would rise by 1%, with most of it devoted to health, education and welfare.
His forecast was backed by shadow local government spokesman, Bob Neill, who said funding cuts would be here for a decade and that ‘I might lose some of my local government friends’ if he became minister following a 2010 general election.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £54,507
Social Worker£... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

S106 and Monitoring Officer

Essex County Council
£49435.1400 - £54930.6000 per annum
Maldon District Council is working in partnership with Essex Shared Services to support the recruitment of the role of a S106 and Monitoring Officer, England, Essex, Maldon
Recuriter: Essex County Council

Trainee Revenues and Benefits Officer (Part Time)

Isle of Wight Council
Career Grade 3-6, £26,017 to £29,071 per annum pro-rata (actual salary £17,227.47 to £19,249.72)
The Benefits team is currently seeking a part-time Trainee Revenues and Benefits Officers Ryde, Isle of Wight
Recuriter: Isle of Wight Council

Legal Officer

Isle of Wight Council
Grade 9, £35,572 to £38,726 per annum
Ideally you will be a qualified paralegal or will offer an equivalent qualification or experience. Newport, Isle of Wight
Recuriter: Isle of Wight Council
Linkedin Banner