Pickles attacked over finance claim

OLDHAM Council is planning to have £29 million stashed away in reserves by the end of the financial year, despite making cuts to services.

But council leader Jim McMahon has hit out at comments made by Communities Secretary Eric Pickles, who said that the majority of councils have enough financial flexibility because most have not had to dig deep into their reserves.

Figures from the Department for Communities and Local Government reveal that Oldham is forecasting a £3 million reduction from the amount held last year. The reserve acts as a financial cushion to meet unexpected costs.

Mr Pickles said: “Most councils have maintained significant reserves, which will give them room to manoeuvre on their finances in future years, and help them to support budgets and deliver efficient local services.”

Councillor McMahon said: “For a former council leader, Eric Pickles’s apparent lack of financial awareness never ceases to amaze.

“Using reserves for ongoing commitments is like raiding the piggy bank to pay for your household bills, the pot very quickly runs dry.

The differing amounts held by councils is evident in Greater Manchester, with Bolton predicting £81 million in reserves and Salford forecasting £15 million. Councils are having to make budget savings as part of the Government’s Comprehensive Spending Review.

It is predicted that English local authorities expect to have almost £11 billion in reserves by March 31.