Councils

Jim Pickard

Eric Pickles has claimed that councils can make huge savings – enough to counteract the impact of imminent cuts – by administrative changes such as cutting pay and merging departments.

Indeed there are numerous examples of council waste or extravagent spending. BBC London is reporting today that Newham Council (now laying off dozens of staff) spent £111m on buying and refurbishing its head office. Read more

Jim Pickard

It turns out today that cuts to local government “spending power” will only be 4.4 per cent on average next year across Britain’s councils. So says Eric Pickles and his DCLG department. This sounds great compared to the figure floating around recently about a 10 per cent cut for the same period.

Except this is looking at apples and pears.  Read more

The axe is hovering over the £4.2bn council tax benefit bill. The details are patchy, but I’m hearing speculation that it could be cut by as much as 10 per cent. If it doesn’t emerge as one of George Osborne’s welfare savings today, it was certainly one he closely considered.

A cut is likely to involve some complex changes to some eligibility rules that are already incredibly complex. The rebate is currently paid to people on low incomes: lone parents, jobseekers and around 3.5m over-65s who are mostly on pension credit. But it is impossible to neatly sum up the criteria. Read more