Labour Leader of Stockport Council, Alex Ganotis has outlined how increasing pressures from Government have brought about ‘incredibly difficult’ decisions in this year’s budget, due to the ‘regressive approach’ of Government to Council funding.

The Cabinet has outlined its intention to request a Council Tax rise of 2.99% next year, one percent less than that permitted by Government (3.99%) without a referendum. The move incorporates the 1% Social Care precept, meaning Council tax itself will only rise by 1.99%, a rise below inflation.  The Budget is the first step in bridging £47million funding gap to be achieved by 2022/23, which comes on the back of £100million already achieved since 2010.  This comes as part of a two year budget, and five year outline plans in order to help maximise the Council’s approach to protecting frontline services.

Outlined in the Medium Term Financial Plan update Cabinet response and Medium-Term Strategy and Budget Choices for 2019/20, the Council’s approach which will bring all arms of the Council together to achieve across five outcome areas: Getting more out of our spending, Improving the citizen experience, Delivering an organisation fit for the future, Making sure we have the right property in the right places, and achieving collaborative service delivery.

As part of this, all departments will be brought together to examine at how they can make money go as far as possible, whilst minimising impacts upon frontline services through reform and innovation.

The plans will go out to public consultation before a final version will be put before all Councillors in February.

Cllr Ganotis said:

“This Budget is undoubtedly the most difficult this Council has faced. We are contemplating incredibly difficult decisions, which include difficult options and which include cuts in some areas.

“We have been placed in this situation by a Government intent on shifting the tax burden for Council services from itself onto the Council Tax payer. Put simply, this regressive approach means less well-off areas pay more to meet demand for services.

“We have seen no support to help deal with increasing demands for Adult Social Care and Children’s Services, relied upon by our most vulnerable residents. Without a lasting solution in this area, we must be clear that residents face a future of reduced services and higher Council Taxation.

“The blame lies firmly at the door of the current and previous Conservative and Liberal Democrat coalition Governments which voted for these policies. Despite what Theresa May might say about ending austerity, there is no sign of this for Local Government.

“Our response has been to take a revolutionary approach to Council budgeting, focussing on outcomes, and protect frontline services as much as we can in the face of rising demand.

“We are intent on doing so without asking the maximum rise from Taxpayers, mindful of pressures faced from rising living costs including recent Council Tax rises. It is important we strike a fair balance between the Council tax burden and protecting the services upon which people rely.

“However, these plans only represent the start of a conversation with residents and other Councillors.

“As we consult on this approach, we want your input- as the options it presents are incredibly important for the future of Stockport. We are particularly interested in your ideas about how we can make our resources go as far as possible.

“All these options are incredibly difficult. We need a government which really wants an end to dangerous austerity and is prepared to fund the needs of the population it serves. “

The difficulties faced by Stockport are reflected across the country by many other Councils. Labour Councils Against Austerity have launched a petition calling to Prime Minister Theresa May and Chancellor Philip Hammond to ‘truly end austerity in local government’ by reversing next year’s planned £1.3bn cut to council budgets; investing £2bn in children’s services and £2bn in adult social care to stop these vital emergency services from collapsing; and pledging to use the spending review to restore council funding to 2010 levels. This petition is available to sign at: http://www.councilsatbreakingpoint.com/?utm_campaign=launch&utm_medium=email&utm_source=breakingpoint

ENDS

NOTES

• For the Medium Term Financial Plan update and Cabinet response see the Agenda Report Pack here from page 92.
• For the MTFP Cabinet Response: Our Budget Choices For 2019/20 see the Cabinet meeting papers of October 2^nd      Item 7  (Pages 33 – 136)
• You will be able to input into pour Budget consultation via Stockport Council’s ‘Have your Say’ window at: https://www.stockport.gov.uk/consultations

See Last year’s Budget release from Stockport Labour here: http://stockportlabour.org.uk/first-ever-labour-budget-passes-at-stockport