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SALFORD COUNCIL REVEALS CUTS OF £40 MILLION
 

Star date: 15th December 2010

SALFORD COUNCIL CUTS TO HIT `£40 MILLION'

Salford City Council has today issued a press release stating that the cutbacks in the city "are expected to exceed £40million in the first financial year", while Salford Council Leader John Merry reveals, "it is inevitable that severe budget cuts will impact on some of the services we provide…"

But could the "impact" have been less drastic? More details here…


Day by day the full reality of the ConDem Coalition Government's cuts are sinking in. On Monday night the Salford Star quoted Government figures stating that the cuts would be £33.5million, with an 8.5% reduction in the next financial year.

Then, thanks to a reader, we re-did the maths and it works out at a £37million cut over the next two financial years. Now Salford Council itself is quoting a cut of 15% next year, "not the 8.5% quoted on Monday" and a figure "expected to exceed £40million in the first financial year".

The press release explains… "The reality is that a number of grants allocated to some of the most vulnerable residents in the city will also be lost, resulting in a larger overall reduction."

John Merry, Leader of Salford City Council says "These budget cuts will affect everyone in the public sector. We have been working for some time to identify where we can make savings and deliver a balanced budget for the next financial year.

"As a democratically elected city council we have a huge responsibility towards our communities and it is inevitable that severe budget cuts will impact on some of the services we provide" he adds "Our priority now is to ensure key services are maintained and people continue to get the help and support they need. We also want to protect the staff we have working for the council. We will do all we can to protect people's jobs and the impact upon them and their families.

"We are facing difficult times" he concludes "but I stand by my commitment to this city and will deliver the best possible services to people in Salford with the remaining budget available."

Already, a letter has gone out from Salford Community Leisure stating it is "intending to save 30% of current expenditure…We are forced to introduce a range of cuts and charges to many of our services".

The letter talks about not replacing staff, introducing pay and display charges at Salford Art Gallery and Ordsall Hall and "the introduction of various forms of cost cutting and income generation" at "our Local History Library, education and learning service, exhibitions, outreach, communities and arts services".

However, next March, Salford Council will pay the BBC Philharmonic Orchestra £3million as part of the £20million sponsorship deal that lured the BBC to MediaCityUK. It will also be splashing £150,000 on opera at The Lowry (see here).

Meanwhile, a Salford Council report on the affects of the cuts in September forecast interest rate rises of up to 6% within the coming few years, which will hike up payments that it has to make on so-called `unsupported borrowing' - loans taken out by the Council that it has to pay back from its own budget.

The Council report in September revealed that "Over the 3 years to 2010/11 some £100m of unsupported borrowing will have been used to support the capital programme that needs to be funded from the revenue budget, and has therefore reached the cap set for that period.

"The forecast for interest rates to begin to rise later this year and into 2011 and 2012 will make the cost of this borrowing more expensive in revenue terms" it added. Part of that `prudential' or `unsupported' borrowing is a loan facility for £22million towards the stadium for Salford Reds rugby club. This is a joint venture with Peel Holdings, one of the richest companies in the north west. But the loan burden is to be borne by public money. 

"I stand by my commitment to this city and will deliver the best possible services to people in Salford with the remaining budget available" says John Merry. But people may well be asking where some of that remaining budget is going…

Salford Council will finalise its 2011-12 budget by February 16th 2011

 

 

 

 

 

 

 

 

 

 


 

wrote
at 1:06:40 AM on Thursday, December 16, 2010
I don't do numbers but when the country in this mess I think I would have tryed to make cuts long before now. I would't borrow 22 million to building a stadium for a team that has a very small following. I would not loan the same team 1million pounds to keep afloat till they move. Ice rinks, proms in parks,funding for the BBC orchestra, opera and any other such foolish follies would be put on hold till we were back on track.Stop the payment of support members,they do very little.Get rid of that mag that is telling us all how great the council is and we are paying for.Stop the hiring of consultants and get the people who are being paid very large wages to get off their backsides and do what they are paid for WORK.This has not happened over night the country is is a mess along with lots of other countries. We should hav been ready for this. Have they forgot 2000 when Salford Labour run council was in the red by 13 million, they sold off the family silver, they should have learnt then you need to watch the pennies but not that lot, they spend our money like a bunch of WAGS on a day out at the Trafford Centre.Who in their right minds holds events that run at a loss of over a £100.000 each time. commit money they don't have to a team that can't pay the bills where they are now, so how the hell will the council get the rent at the new stadium. Oh I know they will lend it to them to pay back.We are in this mess thanks to a Labour run goverment and a Labour run council.
 
Bad Wolf wrote
at 2:47:49 PM on Wednesday, December 15, 2010
Well at least we can have the orchestra play us some happy tunes. This "DEAL" is looking worse all the time. Didn,t the council forsee that Labour would probably lose the general election and that these cuts would come in? It,s been said before but get rid of the orchestra,cancil the opera and the ice rink and get rid of most of the dead wood that works in the higher levels of council and you would probably save £6,000,000 (six million) a year. That £6,500 piss up at the "lets pat oursleves on the back" awards is also the sort of thing that gets up peoples noses.
 
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