We're all feeling the pinch, says Healey

摘要

Local government minister, John Healey, has told council leaders to make 'tough decisions' over services during the credit crunch, because Whitehall is unlikely to contribute extra funds. Mr Healey said: 'In this difficult economic climate, everyone is feeling the pinch. Local government and national government are in the same position. Councils will face tough decisions, but this is what local leadership is about.' Last week, the LGA published its analysis of the downturn (see page 5). Officials claimed rising inflation had devalued Whitehall's three-year funding settlement to councils - made last year - by ￡1.5bn. And soaring fuel bills and new housing responsibilities had exacerbated problems. LGA officials are hopeful of gleaning additional cash from an unscheduled Spending Review next year. Council leaders claim the alternative is to hike up council taxes. But Mr Healey added: 'We introduced a three-year funding settlement for local government precisely to give councils the certainty and flexibility they need to plan ahead and manage their budgets over the longer term. So, there is no need for service cuts or excessive council tax rises.' Councils are exposed to every twist in the financial drama.