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70,000 More Council Job Cuts

Wednesday, June 26, 2013

Cuts Mean Another 70,000 Jobs To Go In Local Government To Take Total To Half A Million Since 2010 General Election Says GMB

These job losses have coincided with a three year pay freeze so it really has been a dire time for local government under the coalition says GMB.

GMB, the union for public sector workers, commented on the Spending Review for 2015/16. See notes to editors for PA summary.

Brian Strutton, GMB National Secretary for Public Services, said “I predict another 70,000 local council jobs will go in these cuts on top of the 420,000 that have already gone. This will take total number of jobs lost in local government to nearly half a million since the election in 2010.

This is more than half of the entire public sector job losses. This has coincided with a three year pay freeze. It really has been a dire time for local government under the coalition.

Council services have already been decimated as a result 26% cuts to local authority budgets and the freeze on council tax.

This further reduction will mean the average council having to find another £30m in savings at a time when local communities need more support than ever. Councils are coping by cutting services but they should really be saying 'enough is enough'. Transferring money from other budgets to local councils is a “smoke and mirrors” exercised and does no change these cuts which are down 10% on a like for like basis.

Things like the £10bn backlog of pothole repairs blighting our roads and the £20bn funding gap for care for the elderly. This means the elderly are left to struggle isolated at home with fewer services or put in chronically underfunded care homes. These are the legacy of council cuts and there are many more examples.

The Chancellors sideswipe at public sector workers by questioning their pay progression also reveals a lack of understanding about pay systems.

People begin at a starter rate of pay and through experience progress to the rate for the job, typically after five years. If anything, public sector workers are actually underpaid for too long and should accelerate much more quickly to the rate for the job. Furthermore, performance related pay systems have been widely shown not to work.

This is just another unpleasant dig at public sector workers who have already been made scapegoats for problems they had nothing to do with.”


Contact: Brian Strutton 07860 606 137 or Kamaljeet Jandu 0795 6237 178 GMB Press Office 07921 289 880

Notes to Editors PA summary

Page 1Chancellor of the Exchequer George Osborne rose to deliver the spending review for 2015/16 at 12.33pm.

Page 2: 12:36 Mr Osborne told MPs that the Government's actions since 2010 had "taken our economy back from the brink of bankruptcy".

Page 3: 12:37Mr Osborne said today's spending review was based on the three principles of reform, growth and fairness.

Page 4: 12:37 Borrowing for this year is set to be £108 billion, compared to £157 billion under the last government.

Page 5: 12:38 Mr Osborne said that, due to "challenges from abroad" like the eurozone crisis and rising oil prices, "this country has to continue to make savings".

Page 6: 12:39 The Government's "biggest single saving" is the £6 billion a year less it is paying to service debt.

Page 7: 12:40 Until 2017/18, the total amount of Government spending will continue to fall in real terms at the same average rate as today.

Page 8: 12:42 Total Government spending for 2015/16 will be £745 billion - £120 billion lower than if it had risen at the average rate of the last three decades.

Page 9: 12:43 This spending round delivers total savings of £11.5 billion - some £5 billion of which will come from efficiency savings.

Page 10: 12:44 Public sector pay rises limited to an average of up to 1% for 2015/16 and automatic progression pay in the civil service will be ended by 2015/16.

Page 11: 12:44 The Government is working to remove automatic pay rises for time served in schools, NHS, prisons and police, but the Armed Forces are excluded from these reforms.

Page 12: 12:46 Office for Budget Responsibility forecasts total number of people working for the Government to fall by a further 144,000 by 2015/16.

Page 13: 12:46 Treasury resource budget to be reduced by 10% in 2015/16, and Cabinet Office by 10%.

Page 14: 12:47 Department for Communities and Local Government has agreed a further 10% cut in resource budget.

Page 15: 12:47 More than £3 billion capital investment in affordable housing.

Page 16: 12:48 Councils to be funded to freeze council tax for the next two years, saving an average £100.

Page 17: 12:49 Water bill rebates in south west England, worth £50 a year, to be extended beyond 2015.

Page 18: 12:49 Government to give councils more flexibility over assets and drive greater integration of local emergency services.

Page 19: 12:50 Single Local Growth Fund to provide £2 billion a year for Local Enterprise Partnerships.

Page 20: 12:51Local government resource budget to be reduced by 10% in 2015/16, but local government spending by around 2%.

Page 21: 12:52 Scotland, Wales and Northern Ireland required to find resource savings of 2%, with a budget for Scotland of £25.7 billion, Wales £13.6 billion and Northern Ireland £9.6 billion.

Page 22: 12:53 New capital borrowing powers of almost £300 million for Scotland and an additional £31 million to help Police Service of Northern Ireland tackle terrorism.

Page 23: 12:53 Savings of 10% to Scotland, Wales and Northern Ireland offices and 7% to Department for Culture, Media and Sport.

Page 24: 12:54 Site of Battle of Waterloo to be restored in time for 200th anniversary.

Page 25: 12:55 Defence resource budget maintained in cash terms at £24 billion, while defence equipment budget will be £14 billion and will grow by 1% in real terms in following years.

Page 26: 12:56 No reduction in numbers of soldiers, sailors or airmen, but cuts in civilian workforce.

Page 27: 12:57 Government will give troops the "best kit" and make "a major commitment to invest in cyber", while the military covenant will be funded permanently from money collected from Libor fines.

Page 28: 12:57 Increase of 3.4% in intelligence services budget.

Page 29: 12:57Foreign Office budget reduced by 8%.

Page 30: 12:59 Home Office resource budget cut by 6% to £9.9 billion, but the police budget will decrease by less than that and counter terrorism budget not at all.

Page 31: 12:59 Departmental budget of Ministry of Justice to be cut by 10%.

Page 32: 13:00 Commitment of £50 billion of capital investment in 2015, amounting to more than £300 billion for infrastructure including roads, railways, bridges, broadband, science and schools by 2020.

Page 33: 13:01 Treasury Chief Secretary Danny Alexander to set out tomorrow "the next stage of our economic infrastructure plan", with specific plans for more than £100 billion of infrastructure projects.

page 34: 13:03 Department for Transport to make 9% saving in day-to-day spending, but receive the largest boost of any department to its capital budget, which rises to £9.5 billion - to be repeated every year to 2020.

Page 35: 13:03 Mr Osborne promises the largest programme of investment in roads for 50 years and in railways since the Victorian age.

Page 36: 13:04 Government to "look at the case for" Crossrail 2 link in London and give mayor Boris Johnson almost £9 billion of capital spending and additional financing power by 2020.

Page 37: 13:05 Department for Energy and Climate Change resource budget cut by 8% and Department for Environment by 10%.

Page 38: 13:05 "Major commitment" to new flood defences for the rest of this decade.

Page 39: 13:06 Department for Business resource budget cut by 6%, including no increase in university student grants.

Page 40: 13:07 Department for Business capital investment to increase by 9%, including

Page 41: 13:08 Resource budget for science maintained at £4.6 billion and capital budget

Page 42: 13:08 Education Department overall budget to increase to £53 billion and school spending protected in real terms.

Page 43: 13:09 Reform to school funding to ensure equal distribution across the country.

Page 44: 13:09 Pupil premium to be protected in real terms.

Page 45: 13:11Schools capital budget to be set at £4.6 billion in 2015/16, with more than £21 billion of investment over the next parliament, funding 20 new studio schools and 20 new university technical Colleges.

Page 46: 13:11 Funding for accelerated free school programme, with 180 new free schools in 2015/16.

Page 47: 13:12 Treasury analysis shows that the top one-fifth of the population lose most as a result of this spending round, said Mr Osborne.

Page 48: 13:13 HM Revenue and Customs resource budget cut by 5%, but extra resources provided to tackle tax evasion raising a predicted £1 billion-plus.

Page 49: 13:14 Department for International Development budget set at £11.1 billion for 2015/16, allowing Government to keep its commitment to spend 0.7% of national income on aid.

Page 50: 13:15 NHS budget for 2015/16 will be £110 billion, while capital spending will rise to £4.7 billion.

Page 51: 13:15 New investment in mental health, and funding for new treatments for prostate and breast cancer.

Page 52: 13:16 Parts of health and social care budgets to be brought together, so that by 2015/16 more than £3 billion will be spent on services for older people jointly commissioned by NHS and local councils.

Page 53: 13:18 A new welfare cap to be set each year at the Budget for four years, applying from April 2015, which will trigger a public warning from the OBR if the Government looks set

Page 54: 13:19 Housing benefit, tax credits, disability benefits and pensioner benefits will be included in the cap, but the state pension will not.

Page 55: 13:20 Payment of winter fuel payments for people living abroad to be linked to a temperature test from autumn 2015 to ensure pensioners in hot countries do not get it.

Page 56: 13:21 Department for Work and Pensions committed to 9.5% savings in running costs.

Page 57: 13:22 New Upfront Work Search system will require claimants to provide a CV, register for online job search and start looking for work before getting benefits.

Page 58: 13:22 Lone parents of three and four-year-olds to be required to attend job centres

Page 59: 13:23 New seven-day wait before claiming unemployment benefits, and all job seekers to be required to attend the job centre every week, rather than once a fortnight.

Page 60: 13:24 Claimants who do not speak English to be required to attend language courses or face benefit cuts.

Page 61: 13:25 Total additional welfare savings of up £4 billion in 2015, including £350 million a year from "new contract with people on benefits".

Page 62: 13:27 The Chancellor concluded his statement at 1.22pm.




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