Andrew Jepp 04 December 2014

The risk of cutting services

Despite the Office of Budget Responsibility (OBR) upgrading its projection for UK growth to 3% this year, local authorities will still be feeling the effects of substantial budget cuts. This Autumn Statement will do little do hearten their mood, with scant concessions for councils that are already feeling stretched.

As a recent report by the National Audit Office (NAO) shows, austerity is already impacting on service provision. With the Chancellor emphasising the need for substantial savings in public spending in the Statement the situation looks set to continue and potentially worsen.

Councils have so far been able to protect their bottom lines from the effects of cuts, but that has meant service reductions in frontline areas such as community safety and traffic management.

With the cuts expected to continue well into 2018, councils will increasingly face difficult choices over what services they are feasibly able to cover. The big risk to local government is that as they reduce services, they expose themselves to new reputational, operational and financial risks in these areas.

As belts are tightened and councils dig further into their reserves, impacts may also be felt on core services such as social care.

In the medium term, over half of councils are in a weak financial position. To tackle the problem, local government has asked the Chancellor for more devolution in England, matching the proposals made for Scotland by the Smith Commission.

While he said he would welcome other cities following Manchester’s lead, the Chancellor’s comments did little to address the radical reforms many local authority chiefs believe is necessary to counteract spending reductions

More grass roots power is just one piece of the jigsaw, irrespective of today’s measures, senior leadership teams will also need to drive innovation and integration in the services they provide in order to meet their targets. Last week’s report from the independent Service Transformation Challenge Panel is a step in the right direction, we look now to see how the Government responds.

Andrew Jepp is director of public sector at Zurich Municipal

SIGN UP
For your free daily news bulletin
Highways jobs

Team Support Officer

Royal Borough of Greenwich
Scale 5 - £32,535 to £33,987
The right person will work closely with both Team Leaders for Self-Directed Support (Finance & Systems and Advice & Recruitment) Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Local Authority Research Practitioner

Royal Borough of Greenwich
PO4 - £49,056 to £52,194
Greenwich is a great place to work. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

SEN Team Manager

London Borough of Bromley
MG6 Circa £60-65k
London Borough of Bromley Council is working hard to do things differently in SEND Bromley (City/Town), London (Greater)
Recuriter: London Borough of Bromley

Social Worker - Children In Care

North East Lincolnshire Council
Salary from ASYE level £36,363 up to £46,142
A service built on passion, pride and togetherness North East Lincolnshire
Recuriter: North East Lincolnshire Council

Pupil and Young Person Supervisor

North East Lincolnshire Council
NJC – point 2 FTE salary – £23,656
Lisle Marsden Church of England Primary Academy wishes to recruit a high-quality Pupil and Young Pupil Supervisors North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner