Council tax rise and 500 jobs to go in new £17m council cuts

[dutchman]

Coventry residents have been warned to expect to pay more for less as the council prepares to make a further £17million of cuts, axe 500 jobs and increase council tax.



Coventry City Council has outlined how it expects to lose a further £17m from its annual budget next year, on top of the £15m of in savings it made in the last budget.

Residents have also been warned that the council plans to increase council tax by around two per cent in the next budget, despite a 1.9 per cent rise in the previous budget.

That will work out at an average £46 annual increase for a band D household, £30 for the lowest band A home, and £92 for the highest band H property.

A key part of the plans is to reduce the council workforce by a further 500 jobs. That’s in addition to the 1,000 posts cut by the authority since 2010.

Council bosses have blamed the changes on a reduction in government funding which will see the authority’s annual grant cut by a predicted £130m by 2020 - a 40 per cent drop from 2010.

The Telegraph has also learned that the council plans to re-finance millions of pounds worth of publicly-funded loans in a move which will reduce council expenditure in the short term, but ultimately leave the taxpayer out of pocket.

Changes being negotiated with lenders will see loans to the council extended over longer periods, meaning lower interest payments but a higher overall repayment.

Labour Coun Damian Gannon, the council’s cabinet member for finance, told the Telegraph that the authority had no choice to extend the term of it loans.

He said: “We have tried to put off this decision because it is not the best value for money but we have hod to do it now.

“The choice is doing this or having a more significant cuts programme, but there isn’t a lot left the council can go at.

“We think what we are doing is the right thing to do. But it will cost the taxpayers in the long run.”

Council bosses also say money will be saved by modernising council services - such as through the planned move to the Friargate development and the creation of a new customer services centre in Broadgate.

Coun Gannon added: “There are more tough times ahead and we have to continue to take action and save money wherever possible if we are to continue to provide high quality services to the people of the city, especially the young and old and those who are most vulnerable.

“By funding this programme, we will be able to make ongoing savings in the coming years and protect council services.

“The government spending cuts that have halved our grant over the past few years are making this job increasingly difficult, but we’re determined to do all we can to soften the impact of the continuing cuts.”

Other work to save money includes service reviews, vacancy freezes and cutting the use of agency staff.

The proposals will be considered by the council’s cabinet on November 26 and, if the changes are agreed, there will be an eight-week public consultation into the cuts.

[rebbonk]

Absolute incompetence.

What experience does Gannon have of financials? Who was his expert advisor?

I don't see the Councillors facing cuts of any sort do you?

[Melisandre]

Perhaps we should all move out of Coventry and let the super rich take over those that can afford these tax rises and can afford their own services. We work the live not live to work.

[Melisandre]

I don't see the Councillors facing cuts of any sort do you?

Nope I ve not heard of any taking cuts Rebbonk . I find it funny this comes out shortly after signing to join Birmingham too.

[dutchman]

Tories slam Labour council cost-cutting measures as £17m savings plan announced

The Conservative Party in Coventry has insisted £130million of predicted cuts for the city council by 2020 is proportionate and also criticised Labour’s decisions about where to make savings in the city.

Local party bosses spoke out as the Labour-controlled Coventry City Council prepared to axe a further £17m from its annual budget in 2016.

Labour has blamed the cuts on the national Tory government’s austerity measures which it says will have forced it to cut £130m from its annual budget by 2020 compared to 2010.

But local Conservative leaders have hit out at those claims as the council prepares for its latest round of cost savings which include axing 500 more staff, increasing council tax by two per cent and re-financing taxpayer-funded loans.

Coun Allan Andrews, deputy Conservative leader, said: “What the Labour council seems to have forgotten is that, in government, Labour racked up the biggest budget deficit in our peacetime history.

“Under Jeremy Corbyn, they want to do it all over again - putting the recovery at risk with more spending, more taxes and more debt.

“Dealing with Labour’s deficit is essential to keep mortgage rates low for local families - helping them to be more financially secure.

“Being a local council means making decisions - these decisions and cuts are very much the choice of Labour councillors.

“The decision to close the 50-metre pool, despite the largest petition in the council’s history.

“The decision to sign up to the West Midlands Combined Authority - these are decisions being made by the Labour council.

“It is important to recognise that every part of the public sector needs to do its bit to pay off the budget deficit inherited from the last Labour government.

“This includes local government which accounts for a quarter of all public spending.”

He added: “Under the settlement, councils will see an average spending power decrease of only 1.7 per cent in 2015/16.

“Of course, councils facing the highest demand for services will continue to receive substantially more funding, while the government is ensuring that no council will face a loss of more than 6.4 per cent in their spending power.”

[rebbonk]

^^^

Fair enough, have a go, but please put forward a few ideas that demonstrate how you would do things differently rather than simply toe the Tory party line.

[dutchman]

At least another 1,000 posts to go by 2019

Around 1,000 jobs could be axed at Coventry City Council between next year and 2019 - but the final figure could be “significantly larger”.

The figures were discussed at the council’s full meeting on Tuesday and a motion was passed to launch a consultation with staff from today.

The number is on top of the 1,000 positions already cut at the council - which employs about 15,000 people from street cleaners to social workers - since 2010.

The job losses are part of the council’s medium term strategy, which runs from 2016-2019, and comes after the Telegraph revealed that 500 of those roles could be lost over the next year as budget cuts continue to bite.

Council bosses are being forced to make £17million of cuts in its budget next year, which are also likely to mean a rise in Council Tax.

The council has blamed the changes on a reduction in government funding which will see the authority’s annual grant cut by a predicted £130m by 2020 - a 40 per cent drop from 2010.

The latest report, created by Chris West, executive director of resources, and passed at Tuesday’s full council meeting - stated: “The council’s human resources and financial strategies put into place in 2014/15 were based on the need to plan on the basis of losing a further 1,000 posts over the medium term.

“If anything, the prospects in the coming Spending Review would suggest a significantly larger figure will be required.”

A consultation is now set to launch a 45-day consultation which will run until January 16.

The report also recommended that an additional £7.4m will be added to existing budgets of £10.1m to fund redundancy and early retirement costs.

As previously reported, the expected rise in council tax will be around two per cent in the next budget, despite a 1.9 per cent rise in the previous budget.

That will work out at an average £46 annual increase for a band D household, £30 for the lowest band A home, and £92 for the highest band H property.

The Telegraph has also learned the council plans to re-finance millions of pounds worth of publicly-funded loans in a move which will reduce council expenditure in the short term, but ultimately leave the taxpayer out of pocket.

Changes being negotiated with lenders will see loans to the council extended over longer periods, meaning lower interest payments but a higher overall repayment.

[rebbonk]

The job losses are part of the council’s medium term strategy...

They actually have a strategy? They seem to lurch from one crisis to another!

...the council plans to re-finance millions of pounds worth of publicly-funded loans...

Sheer stupidity when they are sitting on millions.

Lucas and her rag-tag council must go!