More service cuts loom as city told to save £15m

Published on Friday 18 September 2009 09:54

SAVAGE cuts to services, job cuts and a four-day week for council staff are on the cards after the Scottish Government ordered Edinburgh to slash another £15 million of spending.

City finance leader Phil Wheeler admitted that "tough decisions" lay ahead for the council in the wake of the government unveiling its draft budget for next year.

Finance secretary John Swinney said yesterday local authorities would be expected to make around a third of the 500 million of cuts required.

City council sources confirmed they expected that to result in around 15m of savings for Edinburgh in 2010-11. Even bigger cuts are still expected to the council's budget for 2011-12 and 2012-13. The council expects to face a 92m "black hole" in its finances over the next three years.

Cllr Wheeler said: "We are experiencing difficult economic times and the increased demands on the council's finances are already apparent. Yesterday's announcement is going to mean some tough decisions.

"We are looking hard at the potential for alternative ways of providing our services, while at the same time delivering other efficiency savings and reviewing our property portfolio for any further efficiency opportunities."

As well as looking to privatise some services, cutting staff numbers from the existing 19,400 is thought to be inevitable, although it is thought that the council will try to redeploy any staff whose role is axed. Four-day weeks, a pay freeze and a recruitment freeze are also expected.

One senior council source said: "Going forward, it is inevitable that less people will be employed by the council."

The council has also admitted it cannot go on providing the same level of service that it currently does and is already looking at areas it can cut back on. A process has already been launched looking at alternative ways of providing some services, which is expected to include working with other councils and privatisation.

The council will also be trying to cut back on its property assets. It has already highlighted a move out of Chesser Houseand favours changing work processes and more "hot desking" in other offices.

Cllr Wheeler said: "We will be examining all of our services to make sure funds are directed to areas of greatest priority, with funding levels being reviewed for those areas of less priority.

"If we are all prepared to work together, then we should be confident that Edinburgh can see through this difficult time."

However, Councillor Andrew Burns, leader of the Labour group, today hit out at the cuts being imposed by the Scottish Government.

"Teachers, social workers, nursery nurses. These should also be the priorities of Edinburgh's SNP/Lib Dem council, and they must resist any reduction to Edinburgh's budget," he said.

Despite the cuts, Edinburgh's 3.5m Capital City Supplement is being preserved at the same level.

Edinburgh's housing grant is to be pegged at 36m, as it has been for the past two years.

With health board funding across the country increasing by 2.7 per cent, NHS Lothian's budget will go over the 1 billion mark for the first time, rising from 987.1m to 1.01bn.

LIKELY TARGETS FOR TRIMMING

The council is expecting to have to make more than 90 million of savings in the next three years.

Traditionally, each department has been set efficiency cut targets of two per cent. In the next three to four years it will be at least double that.

The council is not expected to increase council tax because it gets 7m a year for freezing council tax – an arrangement which will continue. A 5 per cent increase would give it 11m, so only anything above that is expected to make it worthwhile politically.

WHERE THE CUTS WILL COME

PEOPLE: They are responsible for more than half of the council's costs.

Cuts could include:

&#149 Redeployment of staff into other roles

&#149 Freeze on recruitment

&#149 Four-days weeks for some staff

&#149 Career breaks

&#149 Pay freeze

SERVICES: Looking at alternative ways to deliver services, including privatisation.

Areas affected could include:

&#149 Refuse collection

&#149 Street sweeping

&#149 School meals

&#149 Museums and galleries

&#149 Ground maintenance

PROPERTY: The council will be examining all of its property assets to identify things which can be sold off. The Chesser House office complex in Gorgie is already set to be axed.