Experts fear councils will be hit hard by drastic cuts in wake of General Election
Local authorities in Lincolnshire are expected to be battered by huge budget cuts in the wake of the General Election, according to economic experts.
While last week's vote did not give any one leader an overall majority, all three main parties have pledged drastic measures to cut the national deficit.
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The Institute of Fiscal Studies said the new government will have to push through those plans, or risk leading the UK towards the kind of financial turmoil seen in Greece.
The Echo previously reported that bosses at City Hall fear the spending squeeze could see cuts of up to 25 per cent. But senior research economist Gemma Tetlow said the full extent of the situation is yet to emerge.
"Overall public spending hasn't decreased much in the current financial year and we haven't got spending plans set out yet so we don't know exactly which areas will be affected," she said.
"In terms of the big picture all three parties are essentially signed up to saying we need to cut the deficit by the same amount over the next six or seven years."
Andrew Taylor, chief executive at the City of Lincoln Council, said: "There is a concern we will be hit with large cuts following the general election.
"If we end up with such Draconian cuts from central Government, which could very well happen, we'll need to have a serious look at our spending. There would be the possibility of cutting other services. It will all depend on the comprehensive spending review, which is due out later this year."
3 Comments
by Stan Butler, On The Buses
Tuesday, May 11 2010, 1:47PM
“Turn the central heating thermostat down by one degree in the County Hall and City Hall offices over the winter months. The temperatture change will be barely noticable. The savings on heating bills will astound you with how much can be saved by turning the heating down by just merely one degree.Then, stop supplying company cars. Give petrol allowences to those who need to drive out of the City for work. Promote staff to use public transport or to cycle to work. Send in an independent auditor to establish where reasonable savings can be made and lastly; re-evaluate how much we pay our senior and chief executives. Investigate whether these people give actual true value for money or whether in some cases they are actually needed at all. Stop giving money and resources to the trades unions and let them fund themselves Cutting costs should start at the very top, not at the coalface of local government....”
by Trouble Maker, Home
Monday, May 10 2010, 10:59PM
“Councils have already had to start making the cuts! this is the result of years of reckless government spending! they have already tried to squeeze the city council when the funding was at the lowest possible level, mixed with the millions they have had to pay out because of government schemes that are under funded and the triple audits! this has lead to a number of councils having to make big decisions over the past two years! how many 'efficiency' savings can you make before there is no one left? all 3 parties should stop looking at easy hits (by that i mean telling someone else to cut the budget like a local council) and start with the big money! housing benefit is the biggest cost to this government! maybe it's time this took a cut?”
by Colin Mair, Coningsby
Monday, May 10 2010, 8:20AM
“I would suggest that a spending review due to be out later this year is too late. It would be a good idea if all parties could put their heads together and come out with a contingency plan that assumes a 25% cut, which by the way is the minimum, not the maximum. Start by listing all essential services, and this means essential services, such as councils supplied in the 1960's. Unfortunately a 25% cut means job losses and it is only fair to plan well ahead for this instead of dumping people in a knee jerk reaction. Freezing recruitment will help people and having a hard look at cutting salaries for highly paid employees will also help to reduce the number of people who will lose their jobs. Don't even think of maintaining your cushy status quo by increasing Council Tax or we will demand a referendum for an elected chief executive who will be mandated to make the necessary cuts.”