Labour leaders warn of rich-poor divide

LOCAL Labour leaders have blasted the Government’s spending review saying Oldham will become divided by rich and poor.

Chancellor George Osborne announced council cuts of 26 per cent over four years with an estimated 490,000 public -sector jobs in danger and public services in jeopardy.

Oldham Council’s Con-Dem leaders say it won’t be until the Local Government Financial settlement is finalised in December that the full impact on Oldham will be known.

Oldham Labour leader Councillor Jim McMahon acknowledged the detail was unknown but predicted the council will lose £33 million in Government grants — or £8.3m each year.

Added to the £45million already taken out of Oldham’s budget over the past three years, the cuts total £78 million. To make it worse the council has a forecasted deficit of £12.3 million in the next financial year and £7 million the following year.

He said: “You cannot simply trim around the edges and expect to balance the books. Even before these cuts came the council had forecasted a deficit, and this just makes the cuts deeper. The Lib-Dems have wasted money like it was going out of fashion on gimmicks and PR and haven’t put enough aside for a rainy day.”

He called for the impact to be made fair saying Labour wants to reduce councillors’ allowances by 10 per cent and scale down senior officers’ pay to save more than £400,000, before conducting a full review of pay.

Councillor McMahon added: “The Lib-Dem and Tory councillors cannot expect to have any credibility when they tell people to share the pain yet, at the same time, are protecting their own allowances and senior officers’ pay.”

The council is also bracing itself for huge cuts to the Area Based Grant with officers working on proposals for a 30 per cent full-year reduction. Councillor McMahon said this would affect equality and could lead to Oldham going backwards with the rich and poor living totally different lives.

The council has already announced that 800 jobs could go and Labour called for a U-turn on 600 social care workers being included.

Councillor Phil Harrison, spokesman for Adult Care, said: “This will dismantle the great service that has been created over recent years.

“These are essential front-line workers who care for our most vulnerable residents. The fact that they are taking the brunt of the proposed cuts will lead to increased pressure on hospitals and upon other care providers.”

But Councillor Lynne Thompson, Council cabinet member for performance and value for public money, said: “Oldham Council has taken all the necessary steps over the past two years to ensure it is braced for the impact of these budget reductions. Our priority remains to ensure that the council lives within its means and spends all public money responsibly in a manner that delivers the maximum value for taxpayers.”