Council cash cuts to shred spending on construction

Grant Prior 13 years ago
Share

Local government leaders are claiming funding cuts for councils across the country are running much higher than the 9.9% average fall announced by Communities Secretary Eric Pickles today.

Pickles said local authorities would undergo an average fall of 4.4% from all funding sources with no council seeing a decrease of more than 8.9% in 2011/12.

But the reduction in funding from central government to local authorities is higher at 9.9% next year as part of a four year plan to cut grants by 28%.

And the Local Government Association claimed some councils will see a reduction in the money they receive from the Government of up to 17% in the first year.

The association believe councils face a total funding shortfall of £6.5bn over the next year which will decimate spending on buildings and highways maintenance.

Baroness Margaret Eaton, Chairman of the Local Government Association, said: “We have been clear that the level of spending reduction that councils are going to have to make goes way beyond anything that conventional efficiency drives, such as shared services, can achieve.

“We have to face the fact that this level of grant reduction will inevitably lead to cuts in services.

“The Government has recognised the impact the cuts will have on those areas of the country that rely most heavily on the public sector and has provided a limited amount of new money to help those areas cope.

“However, it still remains the case that the cuts are frontloaded rather than spread evenly across the four years. Councils now face incredibly tough choices about the services they continue to provide and those they will have to cut.

“It comes at a time when councils are seeing cost pressures mounting on services such as adult social care, child protection, waste management and flood defence.

“Councils knew the cuts were coming and did all they could to prepare. We already cut more than £1 billion from our budgets in the middle of this year. We will now pull out all the stops to minimise the impact of these cuts and build on our record of delivering new and better ways of doing things.”

Latest news

London £3bn housing framework out to tender

SMEs allocated slots on London Construction Programme housing framework refresh
20 mins ago

BAM wins first major RAAC school rebuild

Contractor seals £46m deal for St Leonards school in Durham
53 mins ago

Failed strip out specialist owes £1.5m to supply chain

More than 100 subcontractors and suppliers left with unpaid bills by Type Ten Limited
2 hours ago

Councils to turn screw on building owners over fire safety upgrades

Government tells councils to step up legal action against rogue building owners
1 hour ago

Green light for £300m Fenland energy from waste scheme

Wisbech incinerator will generate 50MW from half a million tonnes of waste
15 hours ago

Multiplex starts on 50-storey Thames tower

Developer green lights construction of latest phase of £3bn Bankside Yards scheme
21 hours ago

McLaren lodges fresh Reading Broad Street Mall plan

Town centre scheme will deliver 600 homes in four towers
1 day ago

Beard bags £24.5m Bristol office revamp

Construction to start in April
54 mins ago

SMEs star in £3.2bn social housing upkeep deal

Around 85% of Efficiency North's framework winners are local firms
1 day ago

Scottish NHS new building projects delayed for two years

Spending clampdown hits over a dozen planned projects
1 day ago

Balfour M25 workers hold strike ballot

Motorway maintenance crews unhappy with 3.4% pay rise offer
1 day ago

Rainsford Contracts acquires M&E specialist

Expanded contractor will have turnover of £45m
1 day ago

Statom expands with launch of Northern HQ

RC frames specialist now targeting jobs in Scotland and north of England
2 days ago

High Court dismisses Stonehenge tunnel challenge

Judge quashes legal challenge against Government consent for £1.7bn job
2 days ago

£1.5bn Teesside carbon capture scheme consented

Final investment decision expected this year for construction start
2 days ago

First viaduct steel section installed at HS2’s complex junction job

Victor Buyck Steel Construction install first 300t viaduct section
2 days ago

Sister scaffold firms file administration notices

BCM Scaffolding Services and Scaffteq West employ 100 people between them
2 days ago

McLaughlin & Harvey suffers £8.6m loss

Cost inflation and Scottish landfill tax legislation hit Antrim-based group
2 days ago

Regulator opens probe into National Highways delivery

ORR concerned about 'dip in performance' on capital projects
2 days ago

Sir Robert McAlpine chief Paul Hamer exits

Hamer replaced as CEO by former Lendlease Europe boss Neil Martin
5 days ago

Unite Students to build £250m Newcastle scheme

Work to start this summer on revamp of Castle Leazes site
2 days ago

Britcon poaches Tilbury Douglas business development chief

Don Stewart joins Britcon board as strategic director
2 days ago

Building control system on verge of collapse

Calls to delay new registration scheme
5 days ago

Go-ahead for UK’s largest mass timber structure neighbourhood

Visionary 685-home sustainable village will be built in Lewes, East Sussex
5 days ago

£90m Manchester zig-zag library approved

Work to start this summer on iconic city centre building
5 days ago

Mace clear to start £34m weather-watching HQ job

Planning granted for European Centre for Medium-Range Weather Forecasts
5 days ago

Ford Dagenham site revamp to hit nearly 4,000 homes

Latest phases approved for £1bn Beam Park redevelopment
5 days ago

Sisk names new data centres regional director

John Hennessey appointed to lead expansion
6 days ago

Balfour starts £171m Sussex Uni student DBFO job

West Slope Residences will provide 1,900 bedrooms
6 days ago

Director and site manager sentenced after labourer crushed

Worker killed during demolition on renovation scheme
6 days ago

Contractor services