Councils ahead of savings target but still face black hole

23 Jun 05
Councils are already ahead of the game on the efficiency drive, according to figures released this week by the Office of the Deputy Prime Minister.

24 June 2005

Councils are already ahead of the game on the efficiency drive, according to figures released this week by the Office of the Deputy Prime Minister.

An analysis of plans submitted to the ODPM by all local authorities show they intend to make efficiency gains worth a total of £1.2bn in 2005/06 — exceeding the government's target of £1bn.

Sir Jeremy Beecham, vice-chair of the Local Government Association and chair of its Efficiency Task Group, said councils were already well practised in generating efficiency gains and the figures, released on June 16, demonstrated their expertise.

'These figures do not reflect a sudden reaction on the part of councils to a Gershon agenda. Year after year, local authorities have protected services and kept council tax down by both budgeting for, and delivering, increased efficiency,' he said.

Local government minister Phil Woolas said councils were making real progress towards meeting their efficiency targets. He added: 'These efforts will release money and other resources that councils can reinvest in local services or use to hold down council tax.'

But Beecham warned that progress on efficiency should not deceive anyone about next year's spending needs.

'Our calculations that local government is facing a £1.5bn black hole next year are based on the assumption that efficiency savings, including the £1.2bn talked about today, are already being used to maintain and improve services and keep council tax down,' he said.

PFjun2005

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