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No savings, just massive cuts ahead for new unitary council
CLAIMS that Northumberland's new super-council will save taxpayers £17 million a year have been shot down in flames during a grilling of finance bosses at County Hall.
The figure was part of the package sold to the Government two years ago by the former Labour administration, to justify axing the existing set-up of six district and borough councils in favour of just one unitary authority.
The cash was touted to be re-invested in frontline services, as a result of cutting duplication of departments and centralising a new, leaner administration.
But, as highlighted by the Gazette, the new council actually needs to slash 55 million from its budget over its first four years.
And at a meeting of the Joint Transition Forum yesterday, finance director Steven Mason admitted that the latest enormous sum didn't include the projected savings.
In reality, the double whammy means the new council is actually facing a 72 million deficit - almost a third of its ex-education budget of 250 million - if it is to make good on its previous pledges.
The grim forecast sparked renewed concerns from forum members, who are responsible for steering the switch-over to the unitary next April.
Forum member and Blyth Valley borough councillor Bob Watson repeatedly asked Mr Mason: "Are we in line to make 17 million savings a year, as was promised?"
After several responses, prompting further requests by the councillor for a "straight answer", the finance director confirmed that the figure would be in excess of the recently announced 55 million shortfall.
Coun Watson said: "This is a disaster that will turn into a catastrophe."
Conservative group leader, Peter Jackson, added: "We've never believed that the efficiency savings, as suggested, were achievable.
"We really need to know why we were led so badly wrong two years ago, and why the Government failed to pick this up."
Back in May, insiders at the county council first revealed to the Gazette that the super-council was in dire financial straits.
Rather than the rosy picture painted by supposed efficiency savings, we were told that a 25 million black hole was forecast between 2009-11.
Yet that figure was rubbished by local government minister John Healey, when he was questioned by this paper on his visit to Woodhorn Colliery last month.
Only this week, the authority itself announced, in a report by Steven Mason, that it would actually have to identify 37 million in savings in its first two years, 27.9 million of which will be required in the first year alone.
Alnwick Independent, Coun Gordon Castle, said: "The much-vaunted talk of saving 17 million a year was never more than a best possible scenario.
"Instead of re-investment in frontline services, as was promised by the creation of a unitary authority, we're actually facing cuts. It's a very bleak situation.
"I am hugely disappointed that it has come to this, but I am not in the least bit surprised that these claims have been shown to be bogus.
"Those responsible for forcing this unwanted structure on us must have known quite some time ago that this was the case."
GAZETTE COMMENT: Who do you think you are kidding, Mr Healey?
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Weather for Northumberland
Friday 25 May 2012
Today
Sunny
Temperature: 9 C to 15 C
Wind Speed: 17 mph
Wind direction: East
Tomorrow
Sunny
Temperature: 8 C to 14 C
Wind Speed: 14 mph
Wind direction: North east
