£45m black hole

Howard Sykes . . . “potential for 10 years of cuts”

Jobs and services under threat as council seeks massive savings

OLDHAM Council faces three years of cuts totalling £45 million.

Liberal Democrats are keeping to their pledge that the council tax will only rise by 2.5 per cent next year, but more than 100 jobs are under threat.

The council has to find £10 million to balance next year’s (2010-11) budget, and has so far identified £8.5 million in efficiency savings, increasing income and redesigning services.
That will include providing minimum levels of statutory services, closing buildings, and increasing charges.

It follows a £21 million saving in the current year, including over 400 job losses and a major redundancy programme.

By 2013 the council will have to have saved a total of £45 million, according to council leader Councillor Howard Sykes, who is expecting the worst three-year funding settlement from central government in decades.

He said: “We predicted we would have to find £10 million next year, but what is surprising is that there will be cuts for three years at least and potentially for 10 years.”

Councillor Sykes said the downturn could lead to council services which are a shadow of what they used to be.

He added: “To save money you can stop doing things and employ fewer people. It comes to a point when if you remove a critical mass from services, there is no service. You have to consider closing some services.”

As unemployment rises the council is already facing extra demand for social care, housing, school places, debt advice, increased take up of free services such as school meals, and council tax and housing benefits.

And prospects of getting finance for major capital projects which need substantial borrowing are bleak, Councillor Sykes added.

There will be £2.3 million invested in areas he says the public have identified as important, such as safe, clean neighbourhoods, improving education and skills, a healthy, active town with good housing, and quality services.

Spending includes the Bloom and Grow town centre improvement initiative (£200,000), alleygating (£150,000), aiming for a university town (£309,000), extended opening at Gallery Oldham (£128,000), district partnerships (£600,00) and housing grants (£46,000).

He said key measures will get the borough “shovel ready” for the economic recovery.

They include getting rid of unnecessary properties, better management of plant and vehicles, streamlining technology and sharing back office services with other councils such as Rochdale, or partners like the NHS.