Council tax ‘will not rise’ pledge

COUNCIL chiefs have pledged not to raise council tax to fill a £25million budget black hole.

Last month Oldham Council announced it could axe 800 jobs — around one in 12 of all 9,880 jobs — to slash £25 million off the budget in 2011-12 and another £20 million in 2012-13.

Lib-Dem leaders are set to publish budget proposals as extensive work continues to find savings across the council.

But the economic backdrop and the Comprehensive Spending Review mean the next local government finance settlement — expected in the next few weeks — will be the most challenging in years.

Councillor Lynne Thompson, cabinet member for performance and value for public money, said: “In the past the traditional answer might have been to increase council tax, but I would again like to reassure residents that we remain committed to no increases in their bills next year.”

Consultation with staff, trade unions, residents, and partnership bodies is described as “key” and will include feedback opportunities at district partnership meetings and a budget simulator on the council website.

A new budget report outlines initial proposals worth £14.9 million in savings and details plans to build on recent successes.

Councillor Thompson said: “The impacts of the credit crunch are long-term and the public sector faces significant financial challenges for the next four years.

“In the last 18 months we’ve made huge progress in improving Oldham Council’s services. Key to that drive has been important work to put us on a sound financial footing and — despite the challenges we face — we are in a strong position entering the next phase of that journey.

“Based on what residents have told us we already have clearly defined priorities which mean that frontline services and strategic projects, like the Regional Science Centre, will be protected.

“This report also highlights the guiding principles which – having helped deliver £32 million in savings in the past 18 months – give us confidence that Oldham will be ready to capitalise on the economic recovery.

“I must emphasise that these are only initial proposals and feedback during the consultation exercise – running through to February, – will shape the final decisions.

“While we recognise some job losses are unavoidable we are having constructive weekly meetings with the council’s trade union representatives to share our latest information and listen to their ideas. We are also determined to identify all savings that might help us avoid compulsory redundancies wherever possible.”

The proposals go before the Performance and Value for Money Select Committee for scrutiny by cross-party members on Thursday before proceeding to cabinet and then full council in December.