Hot on the heels of Prime Minister David Cameron’s warnings yesterday about major cuts in public services – and a call for voters to make their views known as to what services should, or should not be protected – Lancaster City Council has issued its Corporate Plan, drawn up to identify its core priorities.
Potentially all service areas – including frontline services such as waste management, environmental health, public transport, and environmental enforcement – could be affected by impending funding cutbacks, although it is too early to say when the axe will fall.
Back in March, the Council assumed a 3% (around £500,000) year-on-year reduction in its basic funding from Government, but retained a maximum target increase for Council Tax of 3.75%. This meant that the Council needed to save a little under £800K for 2011/12 and £1.3M for the year after, and some progress is being made on this.
Since then, the new Government has announced it will make immediate savings of £6.2billion with a budget due on 22nd June, but has not yet set out by how much it will reduce grants to local authorities. Because well over 60% of the city council’s net revenue budget currently comes from Government grants – and further government backed funding has helped to support many regeneration and community based schemes – it’s a certainty further expenditure reductions will need to be made in the coming months.
The Government has also indicated that it wishes to see councils freeze council tax in the next financial year. Given that for every 1% increase in council tax the Council receives around £85,000, a freeze would have further serious effects on its budget, unless Government provided extra funding to cover this.
In response, the Council’s corporate plan for the next three years sets out the council’s priorities and how it will deliver them in the context of the current financial situation, identifying its major role in economic regeneration – supporting the local economy – climate change, statutory services and partnership working and community leadership.
Introducing the plan, Council leader Stuart Langhorn warns that the Council now expects to have to find a further £1.25 million in savings over the next two years, which will mean further cuts in services and facilities, possible staff cuts and, perhaps, the privatisation of some services is also possible.
The Council’s priorities will be reviewed in the light of legislative changes and/or changes to revenue and other support from Government or other agencies.
Projects it specifically states support for in terms of employment include the creation of the Lancaster Science Park, support for the nuclear power industry and new renewable energy services, and a renewed emphasis on developing Morecambe as a tourist destination.
Lancaster Market is also identified as a ‘project’ to be developed, which is good news after all the uncertainty over its future in recent months.
However, while the Council clearly remains committed to promoting the area’s heritage and culture, there is no specific mention of support for organisations such as The Dukes and Lancaster Literature Festival in the 12-page plan, or any of the area’s museums.
As widely reported, the Government is now consulting all taxpayers on what services it thinks should be kept safe from cuts, and which ones could be sold off or cut to reduce the nation’s budget deficit.
“As with all public bodies Lancaster City Council faces a number of enormous challenges with the very real prospect of a reduction in the money we receive from the Government to help run our services,” warns Coun Stuart Langhorn, leader of the Council.
“Given this context, the corporate plan focuses on those areas which we believe that are of the greatest benefit to the community. Our challenge now is to ensure that the council is structured in the right way to deliver these priorities, whilst responding to the financial difficulties ahead.
“While much has already been done to achieve this aim, we must and will go further to ensure we continue to provide good value for money services to our communities.
“Striving to be more efficient has already meant some tough decisions and a reluctant acceptance that the city council simply can’t do everything that it currently does.
While there have not been any compulsory redundancies at the Council – and it is too early to say if there will be in the future – the council is sure to be considering this option, given announced staff cutbacks from other councils. At present, though, the Council says its intention is to maintain so far as possible its stated intent of no compulsory redundancy and will attempt to lessen the impact on its employees where possible through means such as voluntary redundancy and redeployment. There have been a number of staff departures in recent months.
A reduction in the size of the organisation could also be achieved by not replacing staff when they leave the organisation. As an interim measure the Council has decided that from now on jobs will only be recruited to on a temporary, rather than permanent, basis other than in exceptional circumstances.
“We fully appreciate that some of the decisions we have taken, and will continue to take in the coming months and years, may be controversial and disappointing to those who have previously benefited from those services which have been affected,” adds Coun Langhorn.
“These decisions are not taken lightly, but they are necessary given the financial circumstances in which the council, and the country, currently finds itself.”
• View the 2010 – 2013 corporate plan on the council’s website at www.lancaster.gov.uk/corporateplan
• The Council’s 2009 Annual Report gives an overview of the council and the district it serves as well as a snapshot of some of the Council’s achievements and initiatives during the year 2008/09. It’s worth reading this as well as the Corporate Plan, as it shows how the Council performed against the targets set nationally for its services and the goals it set itself and provides information on the key priorities for the coming year (outlined in the Corporate Plan)