Major errors in government judgement on local authority funding apparent ?

George Osborne boasts of having reduced the government’s financial deficit through continued austerity,  but it appears clearer by the day that a significant part of the cuts were based on negligent misjudgements of the ability of local government to absorb those cuts whist maintaining essential services.   And since May has become prime minister, we have had an autumn statement and a spring budget that have barely deviated from George Osborne’s spending plans.

It is  difficult to come to any other conclusion when major Tory shires are making the headlines by their ability to manage major deficits in funding – and the warnings were there a year ago Surrey County Council had plans to cut millions of pounds from frontline services in face of Conservative austerity.  Surrey council has backed away at the last moment from a controversial plan to poll voters on a 15% rise in council tax, mainly to pay for social care, instead recommending a rise next year of just under 5%.

Surrey “Britain’s richest county” is facing a £100 million cash crisis as scores of councils struggle to close budget deficits, an investigation has found.

Surrey County Council has one of the worst financial shortfalls in the country, according to research seen by The Times. The disclosure came as nearly every part of England warned of tax rises to make ends meet and half of local authorities prepared to cut services for children. Nine out of ten councils will be millions of pounds over budget by the end of the financial year.

Surrey’s woes will alarm Downing Street as it is a solidly Conservative council and the county is represented at Westminster by seven senior government ministers.

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Tory-run Northamptonshire County Council quietly issued a section 114 notice last Friday to signal that it had effectively gone bust, a victim of rapidly shrinking income and rising demand for the social care services it must legally provide. It is the first town hall to be brought down by austerity, but it may not be the last.

The surprise is not so much that it happened but that it took so long. The county has been stripping back its budget for years. Even in 2014, when it unveiled its ambitious (and ultimately futile) “next generation” plan to try to put the council on a financially sustainable basis, it warned that meeting the demands of another five years of cuts was “getting towards the impossible”.

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