LONDON |
LONDON (Reuters) – Local authorities in England on Monday said they faced the biggest spending cuts in generations as the government told individual councils how much their central funding would be reduced over the next two years.
At least 100,000 local authority jobs are expected to be lost over the coming four years as councils adjust to a 28 percent cut in funding over the period to help tackle Britain’s record budget deficit.
Soft targets such as libraries and leisure services were at risk as councils sought to protect high priority areas such as adult care, said consultancy KPMG.
Communities and Local Government Secretary Eric Pickles said councils on average would lose 4.4 percent of their “spending power” next year, less than anticipated, and that no authority would suffer a cut of more than 8.9 percent.
However, the spending figures include money from local council tax receipts and funding from the Department of Health for care services.
The government is cutting central funding for local authorities from 28.5 billion pounds to 22.9 billion by 2015.
“There has been a great deal of speculation and scaremongering about what the implications of the local government settlement might be,” said Pickles.
“The reality is that despite the toughest economic circumstances in recent memory, the coalition government will ensure that next year the average reduction in councils’ spending power will be 4.4 percent,” he added.
Consultancy KPMG said some local authorities would have to make 15 percent cuts in cash terms and council chiefs said they faced a total shortfall of 6.5 billion pounds next year.
“This is the toughest local government finance settlement in living memory,” said Local Government Association Chairman Margaret Eaton.
“We have to face the fact that this level of grant reduction will inevitably lead to cuts in services,” she added.
KPMG said at least 100,000 local authority jobs could go over the next four years.
“We should expect a series of front line services that councils consider relatively lower priority, including such things as libraries, arts, culture and leisure services, to be reduced or stopped,” said KPMG local government head Iain Hasdell.
The GMB union said nearly 73,000 local authority jobs were already at risk according to its survey of positions under threat of redundancy at 77 councils.
“There is no way the private sector will make up for the loss of these posts with three registered claimants chasing each job vacancy,” said GMB public services official Brian Strutton.