Tuesday, 9 October 2012

A Curates egg !

The government’s announcement of another Council Tax freeze is very welcome for hard pressed families, and I am all for driving costs down to deliver 'more for less'. The good part of this 'curates egg' means that budgeting for householders is made a little easier knowing that local taxation will not increase. However there is another part of the egg which presents some unpalatable consequences, it comes in the shape of the consequences of the freeze to local authorities especially those already hard hit by central funding reductions. This will further add to the potential budget deficit we are projecting and will have to be taken up by even more stringent financial measures. The macro situation clearly determines what we have to do to deal with the enormous and ongoing national deficit; growth appears to be the problem with central revenues failing to impact. This puts a greater emphasis on Local Authorities to cut costs, increase incomes and maximise efficiency in delivering essential services. A challenge which appears to be projected until 2018!

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