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Councils Face Average 4.4% Spending Power Cut

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English councils face average cuts in "spending power" of 4.4% next year, the government has announced.

But Communities Secretary Eric Pickles said no local authority would undergo a decrease of more than 8.9% in 2011/12, as a result of the grant reductions.

He promised a "new democratic settlement", with more rights being devolved to local authorities being set out in the Localism Bill.

Edited by fellow

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So much for the 10% across the board cuts. More back-tracking on the Public Sector.

I think this news is another important sign for HPCers. Waiting for massive job losses in the PS and resulting forced house sales is just not going to happen despite all the talk.

Combined with the policy of ultra low IRs and we need to do some serious re-thinking.

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Warwickshire councils only got to cut by 1.5%, Stoke by 8%. Maybe only the profligate will have to cut big.

Already, there are talking heads saying front line services are going. WHY?

It needs to be rammed home again and again, which it isn't enough IMHO, that there is no money thanks to the last govt. The bleating about "evil Tories" is getting so loud that I'm stopping watching news programmes now before I throw things. Even Ch4 news is getting on my t*** now.

Edited by deflation

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Now factor in the real rate of inflation.

The service reduction will be greater that is for sure.

I think they first factor in their pensions, don't they? Then the increase in parking fines. Then any losses in Icesave . . .

Services? Wossat?

We're lucky to still have a few flower beds and benches around here . . . all donated during Victorian times.

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The figure is 10% (well, 9.9% actually) The BBC said 4.4% on earlier reports, now they say 9.9% average. Presumably Piggy Pickles was plying the populace with partially processed porkies :lol:


10% a year over the next 4 years is close to the 40% maximum figure the government asked councils to plan for. Whether it's 10% per year off the current figure or a diminishing 10% per year, year-on-year, I don't know. But the latter would still mean 35% cuts over 4 years.

Regarding localism: It appears that this covers some private sector activities as well as public sector. Pubs and village shops are cited as examples where 'right to run' might apple. It would be interesting to see if locals will be allowed to compulsorily purchase unsold new-builds to rent out as affordable housing.

Edited by Hyperduck Quack Quack

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What % of council spend is on pensions.

What would they need to reduce all wages to to keep ALL staff?

Or could they just cut middle managers and top management levels?

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