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11/08/2009
Recession Hit Councils Face Further Job Cuts
Councils in England and Wales that have been squeezed by the recession face a £4bn deficit which will lead to further job cuts according to the Local Government Association (LGA).
Almost 7,000 council jobs have gone in the past six months and councils are set to continue cutting jobs over the course of the next 12 months.
LGA figures show that year on year the sale of land is down nearly £2.7bn and the interest on cash deposits has dropped by £1.3bn.
Depressed property prices and low interest rates have created a shortfall of £11m daily in comparison to 2007.
The effect of the Icelandic banking collapse is not included in the report estimates as councils have deferred the impact on their budgets until 2010-11.
LGA Vice Chairman Sir Jeremy Beecham said:"Town halls are being hit by a perfect storm caused by the recession.
"Sources of income have dropped sharply at a time when more and more people are turning to councils to help them through tough times.
"At this time of repossessions and redundancies, even more people need the vital support that only councils can provide."
According to the report 20% of councils provide assistance with mortgage payments, 70% help people receive benefits which they are eligible for and nearly 50% have set up credit unions.
Dave Prentis, UNISON General Secretary, said: "During the recession more and more people are turning to their local councils for help.
"We know our members are dealing with many more requests for debt counselling and advice on housing and homelessness. In addition, local economies depend on the flow of public money not drying up, to help them ride out the recession."
A Department of Communities and Local Government spokeswoman said that it's right for councils to support their residents in the recession with value-for-money services so that every pound spent works as hard as the people who earned it.
She said:"We are supporting them with extra funding, and the freedom and certainty to manage their own budgets as they see fit."
(GK/BMcC)
Almost 7,000 council jobs have gone in the past six months and councils are set to continue cutting jobs over the course of the next 12 months.
LGA figures show that year on year the sale of land is down nearly £2.7bn and the interest on cash deposits has dropped by £1.3bn.
Depressed property prices and low interest rates have created a shortfall of £11m daily in comparison to 2007.
The effect of the Icelandic banking collapse is not included in the report estimates as councils have deferred the impact on their budgets until 2010-11.
LGA Vice Chairman Sir Jeremy Beecham said:"Town halls are being hit by a perfect storm caused by the recession.
"Sources of income have dropped sharply at a time when more and more people are turning to councils to help them through tough times.
"At this time of repossessions and redundancies, even more people need the vital support that only councils can provide."
According to the report 20% of councils provide assistance with mortgage payments, 70% help people receive benefits which they are eligible for and nearly 50% have set up credit unions.
Dave Prentis, UNISON General Secretary, said: "During the recession more and more people are turning to their local councils for help.
"We know our members are dealing with many more requests for debt counselling and advice on housing and homelessness. In addition, local economies depend on the flow of public money not drying up, to help them ride out the recession."
A Department of Communities and Local Government spokeswoman said that it's right for councils to support their residents in the recession with value-for-money services so that every pound spent works as hard as the people who earned it.
She said:"We are supporting them with extra funding, and the freedom and certainty to manage their own budgets as they see fit."
(GK/BMcC)
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