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21/07/04 - Government's spending plans are bad news for Cumbrian council tax payers

Rex Toft, Leader of Cumbria county council has issued a stark warning about the impact of the Government's public spending plans. He has spelt out his fears about potential council tax increases and cuts in spending. 

Councillor Toft says: 

"The Chancellor did not spell out the dramatic impact on council tax payers and council services. It is time to put the record straight. 

The Chancellor assumes that the money raised from council tax will rise by 6.7%. In addition the plans demand savings of £6.45 billion from local government. Included are 20,000 job cuts as part of the 100,000 "civil service" job losses. The impact in Cumbria is dramatic. Efficiency savings of £20m are needed each year for the next three years. 

This council is part way through a major improvement and efficiency programme that includes; 

  • turning Cumbria Care round from making a loss to being able now to stand on its own feet, 
  • modernising the school meals service and freeing up £1.8m for other services, whilst ensuring access to school meals for all schoolchildren, 
  • the externalisation of Construction Services that will mean we can increase services without adding to the cost. 

Over the past three years county council tax increases in Cumbria have been amongst the lowest nationally (5th). At the same time we have delivered real increases in the amount invested in front line services. 

We will continue to identify improvements and efficiency savings wherever we can. But there is major difference between service efficiencies and the cuts and council tax increases implied by the Government. Tough decisions lay ahead but this council remains determined, despite Government obstacles, that the people of Cumbria receive quality services at an affordable price." 

Councillor Toft also set out some of the potential impacts on individual services: 

  • £4.3billion efficiency savings from education nationally with teachers contributing 30%. The impact on small schools, particularly in rural areas like Cumbria, is dramatic - more pupils or less teachers. 
  • Money for Health increases by 7% above inflation year on year, but not for adult social care services. There growth will only be 2.7% leaving an estimated shortfall in Cumbria of £6m. 
  • Highways money will increase by 2.5% next year but then be frozen. This comes hot on the heels of significant reductions of around 25% in recent years.