03 October 2008
Town halls have been praised for exceeding their efficiency savings targets over the past three years. Local government minister John Healey said councils were well placed to cope with a slowing economy.
Figures published by the Department for Communities and Local Government on September 30 showed town halls had made efficiency savings of £3.45bn in the last Comprehensive Spending Review period.
This means £500m will be discounted from the target for the next three years, which now stands at £4.9bn. The top ten councils saving the most included Birmingham, Manchester and Sheffield city councils and Suffolk, Kent and Lancashire county councils.
Healey said: 'Councils should be praised for making efficiency savings that have exceeded expectations. This is an excellent achievement, and one that will stand them in good stead in this global economic downturn, where obtaining value for money is more important than ever.'
He said the overall savings were equivalent to a £129 saving on the average Band D council tax bill. Healey reiterated his desire to see efficiency information included on council tax bills to allow householders to see the savings being made.
Ellie Greenwood, senior policy consultant at the Local Government Association, told Public Finance that local authorities should be rightly proud but warned of 'challenges ahead'.
'On top of the £4.9bn efficiency target over CSR07, councils are now managing additional pressures caused by rising inflation and falling income from services and asset sales.'
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