Tagged: cash reserves

Durham County Council using reserves to protect services from deeper cuts

Labour chiefs at the North-East’s biggest council are drawing on cash reserves to stave off deeper spending cuts until after next year’s General Election.

Durham County Council must save another £16.2m in the financial year from April, the lowest annual figure since the last Election, taking the total cuts imposed between 2010 and 2018 to nearly £250m.

However, the figure then rockets to £32m and £39.1m for the following two years and the 2014-15 total would have been much higher had officials were not spending £10m from reserves.

Tory Communities Secretary Eric Pickles has repeatedly lambasted Labour councils for cutting frontline services while sitting on huge reserves.

Labour chiefs at Durham have to date resisted demands to spend their nest egg, but it is thought they have relented now in the hope of avoiding the deeper cuts planned for 2016 to 2018 if Ed Miliband becomes Prime Minister next May.

Durham’s Labour leader Simon Henig said: “Overall spending totals will be the same but we’re lobbying hard for a fairer distribution.

“If that happens, our savings targets will be reduced.”

Next year’s cuts include £8.5m from children and adults services, including £4m from a review of management and support services; and £2.6m from neighbourhood services, including £933,000 from introducing charges for garden waste collection.

The sums are based on an assumption council tax will rise every year by two per cent, although specific decisions are taken each February.

The authority expects to have cut £136.9m by April, including £23m this year.

Opposition groups the Derwentside Independents, Liberal Democrats and Conservatives welcomed the use of reserves, with Lib Dem leader Amanda Hopgood saying they currently stood at £160m.

Each opposition group will produce alternative budget proposals in coming weeks following talks with council directors.

The authority’s Labour cabinet will discuss its 2015-16 budget at County Hall on Wednesday, December 17, before the full council takes the final decisions in February.

Durham imposed a 1.99 per cent council tax hike this year, the first rise since 2010. Its highest single year spending cut was £66m, back in 2011-12.
Source –  Durham Times,  10 Dec 2014