Sunday, 8 January 2012

MP warns more council cutbacks on the horizon


Published by: Hull and East Riding

ANOTHER round of spending cuts is likely at Hull City Council, a city MP has warned. Hull North MP Diana Johnson spoke out after the Government announced next year's proposed funding for local authorities across the country
The figures show Hull is likely to see an overall 4.8 per cent reduction in funding from Whitehall. The cut equates to about £12.6 million being shaved off the council's budget. In comparison, East Riding Council is facing a £2.7 million funding cut, losing £7.2 million.
Although broadly in line with what city council finance officers had been expecting, Ms Johnson said further cuts in council funding would hit Hull hard.
She said: "Hull will be hit by another cut from the coalition Government in 2012-13 on top of the 8.9 per cent cut already suffered this year.
"This is one of the worst settlements in the country and compares with a 2.6 per cent cut for Kingston upon Thames, and Poole's 1.8 per cent – both much wealthier areas than Hull.
"This cut will put further pressure on local services and take even more spending power out of our local economy at a time when jobs are being lost locally across the public and private sectors."
City council leader Councillor Steve Brady said the new funding figures would need to be fully analysed before their full implications were known.
He said: "If it's worse than we were expecting, then its bad news. As a council, we have already been through a lot this year and I am sure next year will not be any easier, whatever the final figures are."
A controversial £60 million programme of cuts at the council triggered by the last round of Whitehall cuts led to 1,000 staff taking voluntary redundancy earlier this year.
Some of the cuts were subsequently reversed when Labour took control of the authority from the Liberal Democrats in May's local elections.
However, Labour has yet to reach agreement with the trades unions on £6 million of savings from proposed changes to pay and working conditions at the authority.
Last week, Chancellor George Osborne confirmed more council funding cuts and a continued freeze on public sector pay as part of his Autumn Statement.
Junior local government minister Bob Neill said: "Every bit of the public sector needs to do its bit to help pay off the deficit, including local government which accounts for a quarter of all public 

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