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£18 million cuts!
Friday, 28 October 2005
The Council has offered 11,000 staff £40 million to settle equal pay claims.   This week they have revealed how they plan to pay for this.   Free reserves total £33 million, leaving another £7 million to be found by 31 March 2006.   (On top of this, there could be extra to pay for PAYE, etc and they still have to agree the ongoing costs from 1 April 2006.)

Although only £7 million is definitely required, Labour plans to make cuts of £18 million over the next 5 months.   This equates to just under 2% of annual expenditure, but nearer 5% of expenditure for these 5 months.   It is planned to spread these cuts over departments in proportion to their expenditure.   Therefore, Education would have to cut £7.9 million, Social Work £5.2 million, and so on.   Departments are not being told how to make the savings but are being pointed in the direction of "non essentials" like Recruitment, Stationery, and Furniture.

The SNP Group on the Council is making the following points:

  • If only £7 million cuts are required, why is £18 being proposed? At the Finance sub-committee on Wednesday John Mason moved that Education and Social Work should not have to make such severe cuts but he received no support from other councillors (all Labour);
  • The Scottish Executive (and possibly the Government in England) should be pressed harder to pay some of these costs. They brought in the (good) legislation and have failed to fund local government for the costs. Even the Council's auditors did not foresee these costs until the last year or so, therefore, it is unfair to expect the Council to bear the full brunt itself.
  • If cuts are being made in areas like recruitment, does this mean a teacher leaving in November will not be replaced?   Will home care for the elderly be cut?   Will school pupils not have access to enough paper?

  

 
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