Manchester City Council facing 21 per cent reduction in government funding

Article published: Tuesday, December 14th 2010

Manchester City Council faces funding cuts of £102m from central government over the next two years, it was announced by Communities Secretary Eric Pickles yesterday. This potentially represents an astonishing 21 per cent drop in government grants by 2012/13 compared to the money it received during the current financial year.

Pickles’ proclamations that no council would be hit by cuts in “spending power” of more than 8.9 per cent per year appear to have carefully concealed the size of reductions in government grants, by including council tax revenue in council spending and ignoring the cumulative effect of cuts over the next two years.

The cuts to Manchester are set to be some of the deepest in the country, in a move which Pickles described as a “progressive settlement” which would ensure “fairness between different parts of the country.”

Calculations made by the Regeneration and Renewal website however, reveal that the 25 most disadvantaged local authorities – according to the 2007 Index of Multiple Deprivation – will see their budgets cut by an average of 9.4 per cent in 2011/12, compared to an average of just 4.6 per cent for the 25 least disadvantaged councils. In Greater Manchester – set to lose £341m overall in the next two years – the authorities facing the lowest cuts are Lib Dem Stockport Council and Conservative Trafford Council.

Representatives from the public sector and third sector organisations expressed desperation over the likely consequences of the cuts at Manchester City Council’s executive meeting last week, but yesterday’s news proved even worse than expected. However, it appears the council is unlikely to show any form of resistance to the implementation of the Coalition’s policies.

Today Executive Member for Finance Cllr Bernard Priest said it would be “very difficult” for the Manchester City Council to honour its promise of making no compulsory redundancies. It is expected the cuts will cause nearly 7,000 people to be laid off in town halls across Greater Manchester over the next few years.

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Comments

1. […] as reported by the Manchester Mule, according to the Regeneration and Renewal website the 25 most disadvantaged local authorities – […]

   Pingback by Southampton amongst the cities taking the brunt of cuts « The Dolphin's Blowhole on December 19, 2010 at 11:48 pm

2. 21% can easily be achieved with minimal effect on essential services.

   For example, go to the Town Hall and you’ll meet some staff who earn good wages for arranging and pottering about at miniscule arts, writing and poetry festivals which are only attended by themselves, similar staff from other councils and a smattering of ‘artists’ and ‘authors’ who take the grants on offer instead of seeking proper work.

   There is a small conferenece circuit which this clique of people attend too, all at the taxpayers expense. Their contact with the broad mass of the city’s taxpaying population is minimal or even non-existent. They are of no benefit to anyone except themselves.

   Meanwhile, home-helps and other essential staff on much lower wages face the axe.

   This is just one example of how the council wastes our money.

   This

   Comment by simon on December 21, 2010 at 3:08 pm

3. If these festivals are miniscule they are hardly going to save £102m. What other “non-essential” services add up to £102m?

   Comment by Barry on February 2, 2011 at 12:15 pm

The comments are closed.