Comments on: Unkind cuts, by Heather Wakefield http://opinion.publicfinance.co.uk/2009/11/unkind-cuts-by-heather-wakefield/ Just another WordPress weblog Wed, 08 Sep 2010 18:31:07 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Web links for 11th November 2009 | ToUChstone blog: A public policy blog from the TUC http://opinion.publicfinance.co.uk/2009/11/unkind-cuts-by-heather-wakefield/comment-page-1/#comment-2607 Web links for 11th November 2009 | ToUChstone blog: A public policy blog from the TUC Wed, 11 Nov 2009 19:02:14 +0000 http://opinion.publicfinance.co.uk/?p=2515#comment-2607 [...] Unkind cuts UNISON’s Heather Wakefield has a post on Public Finance’s blog on the trend to spending cuts in Councils’ services. Nottingham has seen cuts of “£10.5m from services to the elderly and disabled, including an end to the Dial-A-Ride service, closure of four day centres, increased charges for day centres, transport, and meals-on-wheels and the sale of 13 residential care homes. Meanwhile, employees face pay cuts ranging from £2000 – £8000 a year, a three-day reduction in annual leave and lower essential car user allowances. And if losing your job isn’t bad enough for the 500 to be ‘let go’, the redundancy agreement is to be cut by a third.“ [...] [...] Unkind cuts UNISON’s Heather Wakefield has a post on Public Finance’s blog on the trend to spending cuts in Councils’ services. Nottingham has seen cuts of “£10.5m from services to the elderly and disabled, including an end to the Dial-A-Ride service, closure of four day centres, increased charges for day centres, transport, and meals-on-wheels and the sale of 13 residential care homes. Meanwhile, employees face pay cuts ranging from £2000 – £8000 a year, a three-day reduction in annual leave and lower essential car user allowances. And if losing your job isn’t bad enough for the 500 to be ‘let go’, the redundancy agreement is to be cut by a third.“ [...]

]]> By: Heather Wakefield http://opinion.publicfinance.co.uk/2009/11/unkind-cuts-by-heather-wakefield/comment-page-1/#comment-2582 Heather Wakefield Tue, 10 Nov 2009 19:40:55 +0000 http://opinion.publicfinance.co.uk/?p=2515#comment-2582 Richard - Spot on! I was indeed referring to Mid Sussex DC. I think you have missed my point though: In the Medium Term Financial Plan for July 2008, Mid Sussex DC was projecting income of £9.532 million in 2012-2013 from council tax. By choosing to adopt a freeze, the projection for 2012-2013 has fallen to £8.445 million - a difference of over £1 million or 11.4%.It is the decision to freeze council tax - not the recession - which will create a not insignificant hole in the budget.It is also why the council now says it is projecting a deficit of £259,000 in 2011-2012 and £463,000 in 2012-2013, when it would have balanced its books. In the meantime it will be saving a local Band D tax payer 37 pence a week in 2012-2013 - not enough for a pint of milk and not enough to jeopardise local jobs and infrastructure. And while I'm on the subject, the council tax precept is an even more critical element of Nottinghamshire County Council's finances. There it accounts for a massive 64.12% of the total budget requirement. By freezing council tax, Nottinghamshire will be digging a £28.7 million hole in its budget - almost a third of the £84.9 million that the council claims will be the budget gap in 2012-2013.There are some serious questions to be asked with this strategy: What impact does such a deflationary measure have on the local economy? And what exactly has the Nottinghamshire County Council tax payer 'saved' as the result of such recklessness? For a Band D tax payer it will be precisely 73 pence a week in 2012-2013. Sadly, 77.8% of Nottinghamshire tax payers are in Bands A, B and C. For the 40% in Band A, the 2012-2013 saving is just 40 pence. If the transparency that David Cameron desires had been built in to the decision-making in Nottinghamshire, I suspect that Cathy Helliwell would have chosen to keep the services she needs and their cost down!!! Richard – Spot on! I was indeed referring to Mid Sussex DC. I think you have missed my point though: In the Medium Term Financial Plan for July 2008, Mid Sussex DC was projecting income of £9.532 million in 2012-2013 from council tax. By choosing to adopt a freeze, the projection for 2012-2013 has fallen to £8.445 million – a difference of over £1 million or 11.4%.It is the decision to freeze council tax – not the recession – which will create a not insignificant hole in the budget.It is also why the council now says it is projecting a deficit of £259,000 in 2011-2012 and £463,000 in 2012-2013, when it would have balanced its books. In the meantime it will be saving a local Band D tax payer 37 pence a week in 2012-2013 – not enough for a pint of milk and not enough to jeopardise local jobs and infrastructure.

And while I’m on the subject, the council tax precept is an even more critical element of Nottinghamshire County Council’s finances. There it accounts for a massive 64.12% of the total budget requirement. By freezing council tax, Nottinghamshire will be digging a £28.7 million hole in its budget – almost a third of the £84.9 million that the council claims will be the budget gap in 2012-2013.There are some serious questions to be asked with this strategy: What impact does such a deflationary measure have on the local economy? And what exactly has the Nottinghamshire County Council tax payer ‘saved’ as the result of such recklessness? For a Band D tax payer it will be precisely 73 pence a week in 2012-2013. Sadly, 77.8% of Nottinghamshire tax payers are in Bands A, B and C. For the 40% in Band A, the 2012-2013 saving is just 40 pence. If the transparency that David Cameron desires had been built in to the decision-making in Nottinghamshire, I suspect that Cathy Helliwell would have chosen to keep the services she needs and their cost down!!!

]]> By: Richard http://opinion.publicfinance.co.uk/2009/11/unkind-cuts-by-heather-wakefield/comment-page-1/#comment-2565 Richard Mon, 09 Nov 2009 14:33:44 +0000 http://opinion.publicfinance.co.uk/?p=2515#comment-2565 I assume the small Sussex District you refer to is Mid Sussex D.C. That being the case why have you totally ignored reference to the fact that the majority of Council Tax paid by Mid Sussex residents is in fact the West Sussex County Council precept and the Sussex Police Authority. The MSDC proportion of the average Band D tax of £1468 is (as I am sure you will know from their website) £146 i.e. only 10% of the total. Also, the services provide by MSDC are relatively few when compared to WSCC who are responsible for Education, Adult Social Services, Children's Services, Highways Libraries etc. etc. So whilst any budget reductions may impact on the few (relatively) staff employed by MSDC it is somewhat incorrect to say this will impact hard on services. As a MSDC resident and Council Taxpayer I believe any changes to Council Tax and services will be very marginal indeed and hardly worthy of reporting in your blog. I assume the small Sussex District you refer to is Mid Sussex D.C. That being the case why have you totally ignored reference to the fact that the majority of Council Tax paid by Mid Sussex residents is in fact the West Sussex County Council precept and the Sussex Police Authority. The MSDC proportion of the average Band D tax of £1468 is (as I am sure you will know from their website) £146 i.e. only 10% of the total. Also, the services provide by MSDC are relatively few when compared to WSCC who are responsible for Education, Adult Social Services, Children’s Services, Highways Libraries etc. etc. So whilst any budget reductions may impact on the few (relatively) staff employed by MSDC it is somewhat incorrect to say this will impact hard on services. As a MSDC resident and Council Taxpayer I believe any changes to Council Tax and services will be very marginal indeed and hardly worthy of reporting in your blog.

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