Council Cuts Can Be Fought and They Must Be

Councils set budgets amid 40% cut.

What we think

During February many council budget-setting meetings are taking place across the country, slashing millions more pounds off vital services.

Birmingham council, the biggest in England, has already cut around £590 million from its annual budget since 2010 and is expecting to cut another £180 million by 2021. The chief executive of that presently Labour-run council warned: “We are fast reaching the point where there could be catastrophic consequences for some people.” This is an understatement, as many of the most vulnerable people have already suffered terrible consequences. Far fewer elderly people are receiving needed help, the number of people sleeping on the city’s streets has quadrupled and children’s and youth services have been callously cut to the bone.

The same shattering picture is seen almost everywhere, following the 40% real-terms reduction in core funding to councils from government over the last five years. This year the knife isn’t just slicing in but is being twisted, because the government is allowing councils the leeway to impose an extra 3% increase in council tax to cover for cuts in social care.

This brings the total possible increase in council tax without holding a local referendum to 4.99%. However, while squeezing household finances further, it would be nowhere near enough to adequately fund social care in most areas.

Surrey

How ironic it is that the only opposition to this scenario that has achieved media prominence in recent weeks has been from the Tory leader of Surrey county council, David Hodge. To put pressure on the government he announced a shock plan to hold a local referendum on a 15% council tax rise.