The Local Government Secretary’s festive suggestions of ‘50 ways to save’ might have been amusing if councils did not face funding cuts of more than 28% and potentially further bad news in this week’s settlement
Like many others, including local authority leaders, councillors and senior executives, I enjoy a good Christmas cracker joke. So when I read The Sunday Times’ report yesterday on Eric Pickles’ latest advice to local authorities on ‘50 Ways to Save’ I laughed.
The Secretary of State for Communities and Local Government offers ‘practical tips and guidance’ to councils as they face up to what the Local Government Association has already described as ‘unsustainable’ expenditure cuts. Like the Christmas party conjuror – or should this be jester – he makes several intriguing and strategic suggestions.
These include: banning mineral water from meetings; opening ‘pop-up’ shops in spare office accommodation; closing subsidised canteens (how many of these still exist?) and inviting local sandwich purveyors to sell their products to staff; loaning local authority art work for fees; and ending the use of hotels and conference expenditure. Apparently there are 50 ideas as bright as the Christmas tree lights – though presumably these will not be switched on – my suggestion for idea number 51.
These are all interesting ideas, which many local authorities have already implemented or are very capable of identifying themselves. Yet the secretary of state adds this list of cost-saving ideas to his localism Christmas gift list. The list already contains advice – instruction – on household waste collection and restrictions on local decisions on planning.
All of this would be amusing if local authorities in England had not had their government grant cut on average by 28% in the current spending review period, with deeper cuts now promised by the Chancellor in this year’s Autumn Statement.
These cuts have been higher than 28% in many areas of the country with the greatest social and economic challenges. Demand for local government services such as social care is growing as a result of demographic change and the economic conditions that continue to impact on communities across the country. Local authority partners in the public and social sectors are also facing cuts. The pressure is on.
How many cancelled mineral water bottles would close a 28%+ funding gap? How much rent from ‘pop-up’ shops would be needed to avoid the closure of public libraries or Sure Start centres? Of course, every local authority should seek to be as efficient as possible, to eliminate all unnecessary expenditure and to maximise income from sources other than charges, council tax and government grant. However, as almost every local authority leader, councillor, senior officer, staff and service user will tell you, these measures will be insufficient to close the funding gap created by Pickles’ policies.
Local authorities have to consider much more fundamental options, including deciding what they will continue to offer to their communities and which services will have to be withdrawn; how services can be provided in different ways with different partners; what changes can be made to the relationship between local authorities and their citizens; how they could work more creatively with the local voluntary and community sector and local communities, and with their public sector partners; and much more.
Local government has proven its ability to improve efficiency and its resilience but there are naturally limits. It has to bravely seek new ways of serving its communities.
Consequently, as they face the prospect of having to issue redundancy notices, increase charges and close services – never pleasant and even less so in this festive period – I wonder how funny local authority leaders will find the secretary of state’s little list of 50 ways to save.
They might have hoped for a different present when Pickles announces next year’s local government finance settlement this week. I believe that they would prefer to have a set of announcements including all or many of the following
- a new commitment to protect local authority budgets from the worst of the future government cuts, given the disproportionate hit already undertaken by local government
- additional funding for social care and the implementation of the Dilnot Review recommendations
- financial cover for the increased costs to local authorities arising from the welfare reforms including housing benefit and council tax benefit changes; and to avoid families being moved for their housing
- a pan-Whitehall charter on localism that defines the importance of local democracy and the role of a facilitating and redistributive state
- greater devolution of Whitehall funding based on the concepts of Community Budgets and Total Place
- agreement to negotiate with local government a new role for local government to work with schools and champion learners and parents
- new economic growth powers and resources for local authorities
I fear that the secretary of state is unlikely to play the role of Santa Claus when he announces the 2013/14 finance settlement. In the context of that announcement, his Christmas cracker ideas of ‘50 ways to save’ will not produce many laughs of joy, but, sadly perhaps, some of woe.
