Council tax rises and job cut threat to reduce £17m council overspend
TAXPAYERS are facing the threat of inflation-busting council tax hikes and service cuts to prevent a local authority sliding almost £17 million into the red.
Councillors summoned to a special briefing yesterday were told that Stoke-on-Trent City Council was already predicted to overspend by more than £7.5 million by April. And senior managers warneda that a further £9.3 million of unexpected costs had been identified.
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The authority's entire net budget is £201 million.
Managers blame the shortfall on the recession, which has decimated income from investments, rents and fees, while pushing up demand for benefits and other services.
But council chiefs insist the city is in a better position than many other local authorities.
Interim chief executive Chris Harman said: "Had we not taken difficult decisions in the last few years, which removed £30 million from the budget, then things would be different now. We have to save about 7.5 per cent of our total budget, whereas some authorities are facing cuts of 30 per cent."
Director of resources Paul Simpson, pictured, said proposals for cutbacks would be put forward within weeks.
He said: "We need to take steps to ensure that we achieve a balanced budget by the end of the financial year."
Mr Simpson said freezing council tax levels in April in line with current inflation would push any overspend up by at least £2.6 million, but a maximum permitted rise of 4.9 per cent would save the authority £1.2 million.
He also said two-thirds of the council's net budget was spent on wages, costing £133 million to employ 5,500 non-teaching staff. Cutting back on agency staff and consultants could save £1.3 million this year.
Council leader Ross Irving said his cabinet would protect frontline services "if at all possible".
He said: "We know we have got some tough decisions and the cabinet and myself will ensure the council is run efficiently, effectively and legally."
But some councillors felt the global recession was being used as an excuse to conceal inadequate financial planning.
Labour group leader Mike Barnes said: "I don't accept that all these different overspends are just down to the recession.
"Sixteen million pounds is a huge discrepancy considering we only implemented the current budget three months ago."
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by Andy Boys, longton
Wednesday, September 16 2009, 7:05PM
“The City Council has been undergoing organisational change in one form or another since the reign of Ita O'Donovan as Council Manager. She was followed by another 'reformer'. Steve Robinson, who appears to have ben afflicted with a tendency to appoint old chums on lucrative consultancy arrangements in a range of interim posts. So far as I can tell, and a request under the Freedom of Information Act, yielded the usual "we do not keep records" on this kind of information, these consultants produced little added value. Like 'Sophie, Staffordshire', I used to work for the Council but resigned because I was not convinved that Ita O'Donovan was either capable or committed to the City's future. The architect of subsequent so-called refoms, Steve Robinson, held staff meetings where he assured staff he was in for the 'long haul' but jumped ship in less than two years. Several contributors have referred to themsleves as 'staff members', making reference to 'you know who you are'. I wonder whether the time's right for setting up a council employee blog site in order to give those committed council staff an opprtunity to tell the truth about what's really happening? Why not make it accessible to the folks of the CIty? This way we might have a considered debate between those on the front line delivering council services and the people who rely on them. Cutting out the middle men/women (especially high paid interim comsultants )would provide an opportunity for real debate rather than some of the half-baked reports that get nodded through by the Council's Cabinet. Are you up for it?”
by Bert, Keele
Tuesday, September 15 2009, 8:31PM
“Can't see what all the fuss is personally.
The Council says that it may have a budget shortfall by the end of the year and in future years as well unless it does something about it now.
So it decides to tackle the problem.
Sounds like pro-active budget management to me and good practice.
what is everyone spouting on about? Consider the FACTS not the Sentinel spin.”
by Anon, Mow cop
Tuesday, September 15 2009, 8:17PM
“The day of reckoning has arrived for the city fathers, and all the blame can be fairly laid at their door. Convinced in their own belief people would vote for them no matter whatever they did, they spent money like confetti. 5,500 staff, thats not a workforce, its an army !!!!!!!!!. Its employs quite a sizeable percentage of the entire workforce in Stoke-on-Trent, need a job ???, the council will give you one, dont worry about the cost, just put the council tax. Even Baldrick could not think up a "cunning plan" to get out of this one. At the end of the day you cannot expect people to pay ever-rising council tax bills, they have to live within their family budgets and the council has to learn this lesson itself.”
by Tim, Stoke
Tuesday, September 15 2009, 5:36PM
“Andrew, Longton
WOW! That a Winston Churchill Speech...Come the Revolution, you need to at the Front Brother............”
by Tim, Stoke
Tuesday, September 15 2009, 5:24PM
“trinity,
Labour have left such a mess that it will take years for us to get back on the right track. Did you think the tories can turn it around that quick, get real.....”