Early figures reveal cuts of 16% for some councils

Copied from Local Government Chronicle online
8 August, 2013 | By Ruth Keeling

Councils forced to revamp their savings plans after early sight of their individual funding allocations revealed cuts as high as 16% in 2015-16.

The indicative allocation figures, released last month by the Department for Communities & Local Government, have caused alarm within local government which had expected cuts of around 10%.

Councils suffering the deepest cuts have warned they could now be pushed towards a ‘doom’ scenario where services would have to be closed and vital growth plans ditched.

The extent of the cuts is the result of a series of ‘top slices’ taken from councils’ revenue support grant to fund central government programmes, such as the ‘Dilnot new burdens’ budget announced by the chancellor last month.

The hardest hit councils have been told their funding settlement assessment could fall by 16% in 2015-16. Only two authorities, Wokingham BC and Surrey CC, face cuts of less than 10%.

North Kesteven is among 69 councils facing a 16% cut. Deputy chief executive Alan Thomas said the authority might have to rethink its growth priorities. Its previous £1.75m saving plan will now have to be increased to £2.25m, equivalent to 15% of its £11.5m a year net budget.

Mr Thomas said the Conservative-run council might also review its existing policy of reserving New Homes Bonus payments for infrastructure spending. “I think we are going to have to take a different view of that now and use quite a bit of that New Homes Bonus to support core spending, otherwise we won’t be able to balance the books,” he said.

The authority was already reeling from the “absolutely devastating” government announcement that up to 35% of New Homes Bonus income will be handed to local enterprise partnerships from 2015-16, he added.

Districts and inner London boroughs were the hardest hit group of councils in 2015-16, facing 15% cuts on average. Outer London boroughs, metropolitan districts and unitaries face reductions of 14%; counties will see an average reduction of 13%.

David Huxtable (Con), cabinet member for resources at Somerset CC, which faces a 15% cut, said the reduction matched its most pessimistic plan and would have “a huge impact on services”.

He said: “We will have to stop doing things… We will only be looking after statutory services.”

While the early release of individual figures for 2015-16 has been welcomed, treasurers bodies are due to meet senior civil servants to discuss missing details in the coming months.

Brian Roberts, former president of the Society of County Treasurers and Leicestershire CC director of corporate resources, said: “Having these before the summer recess is very helpful. But there is still a lot of uncertainty.”

Crisis leads to council tax referendum call

Copied from Local Government Chronicle online
30 May, 2013 | By Mark Smulian

Herefordshire Council could become the first to hold a council tax increase referendum after an emergency meeting over a budget crisis.

This followed a review by incoming chief executive Alastair Neill, which found the budget set only in February contained errors and weaknesses.

It must now save an extra £8.4m this year and make 290 job cuts, against some 120 originally intended.

The council has saved some £21.1m over the last two years, and must save a further £32.2m over this year and the next two.

Mr Neill’s review found areas in the February budget “where the plans were not sufficiently resilient and [where] additional savings need to be made to ensure that the council delivers its plan within its budget”.

This included £1m of procurement savings which had “slipped and needed to be tackled” and £3.8m of learning disabilities grant which had in effect been counted twice.

Tony Johnson (Con), the council’s new leader, said: “We are facing a very challenging time over the next few years and as such we need to consider alternative approaches to delivering some of our services.

“Inevitably, non-mandatory services must bear the brunt of the cuts and although this will unfortunately involve job losses, it does not automatically mean the loss of services.”

The extraordinary council meeting agreed that the cabinet would consider holding a referendum to increase the 2014-15 council tax above whatever cap level is imposed.

Some 25% of Herefordshire’s income comes from council tax, which it had frozen from 2011-13. It increased it this year by 1.9%, equivalent to £1.5m.

Cllr Johnson said: “We must consider the possibility of raising council tax responsibly and proportionately across the county, as we begin to consider next year’s budget.”

Before doing so, he wanted to gauge whether residents “would be prepared to vote in favour of raising taxes to protect the county’s vital services”.

The coalition dropped Labour’s council tax cap, but substituted a system where tax could be raised above a nationally defined level only following a local referendum.

No council has yet held such a referendum, fearing both the cost and the likely outcome. In Herefordshire’s case a referendum would cost £100,000 to conduct.

In a joint statement with Unison, Herefordshire said it had agreed to reduce from three to two the number of days of unpaid leave to be taken during the Christmas period and to increase redundancy terms from the statutory minimum to 1.5 times that level.

Unison would prefer to keep in-house provision but will engage “fully in consideration of alternative business models that may be required in areas of service, where the council has to reduce or withdraw funding”.

160,000 Brits lose jobs to migrants

A study by the Migration Advisory Committee has revealed that more than 160,000 British people have lost out on a job to an immigrant in the past five years. Figures also revealed that a total of £2,216 is spent per head on education for immigrants and their families every year, whilst only £1,662 is spent on British children. At least 112,000 new homes will need to be built for immigrants over the next five years.

I doubt this will come as much of a surprise to those at the sharp end. No doubt the politicians are already sharpening their pencils in preparation for trotting out the same lame excuses for failing to control immigration into our already overcrowded country. The one about migrants only taking jobs the locals don’t want is a standard one along with the unconvincing one that nobody believes anymore about them making a net contribution to the economy. I wonder if these figures also include all the money wasted on the translation services virtually every public service provider needs to use in order to communicate with many of these immigrants?

More of our money to be spent overseas

Is there no end to this government’s duel fixations of climate change and overseas aid? These two issues seem to of now converged into yet another wasteful financial commitment, this time with a scheme to help Africa reduces its carbon footprint, to the tune of £1billion.
The government continues to tell us that all the financial pain they are visiting upon us is necessary and we just have to ‘suck it up’ and get on with it – it’ll all be worth it in the end. Tens of thousands of public sector workers are loosing their jobs, including many of the service personnel who have been fighting and dying in wars our politicians are so keen to participate in (but not literally of course).
I wonder how many more services will be cut and jobs lost in order to fund what seems to be an ever growing list of vanity projects?