The Pre-budget report sends mixed messages

Posted by Cllr Geoff Driver, Lancashire County Council on December 14th, 2009

The Pre-budget report sends mixed messages. On one hand, the Chancellor identified health and education as top priorities – which is helpful as these services represent more than two-thirds of public expenditure in Lancashire. On the other, the scale of predicted spending cuts means other services will face a massive financial challenge. That’s clearly bad news for local government but it’s especially chilling for second tier authorities. Councils need to work together now like never before if we have any hope of minimizing the impact of these budgetary measures on the people of Lancashire – particularly the most vulnerable among us.

The Report talks about efficiencies, specifically in waste collection and disposal and concessionary travel. Local government leads the way on delivering value for taxpayers and we strive to squeeze every last bit out of every public pound. But this scale of reduction can only lead to real cuts in services at a time when demand is soaring. I’m also concerned at the moves on public sector pay and pensions. Councils of all political stripes are dependent on a well motivated, creative and loyal workforce to maximise efficiencies and minimise the impact of funding cuts. Some of the proposals may well have the opposite effect, I fear.

The biggest problem we face, though, is the spectre of uncertainty. Lancashire spends more than £1.4 billion per year, around 60 to 65% of it funded from central government in one way or another. The Pre-Budget Report simply increases the uncertainty over our financial position from 2011/12 onwards because the Chancellor did not make it clear exactly how he would reduce the massive deficit so that we all can make a fair judgement on the measures announced last week.

I think I probably speak for all Council Leaders when I ask for greater clarity and certainty about the actual funding levels for Lancashire and other council areas for the next three years so we can properly understand the scale of the task and get on with it.

Councillor Geoff Driver


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