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Stretched council fears added burden of business rate and council tax reforms (From St Helens Star)
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Stretched St Helens Council fears added burden of business rate and council tax reforms
8:00pm Monday 7th January 2013 in News
ST HELENS Council leaders have voiced fears that a further downturn in the national economy could impact on already stretched services as it grapples with the government’s recent general grant settlement.
After analysing a pre-Christmas settlement announcement for 2013-14 and 2014-15 raises the overall annual revenue grant loss to £50million by 2014-15.
It has already resulted in the loss of an estimated 1,010 jobs – and cuts to services, with every council department’s expenditure currently under review.
In a bleak New Year statement, the local authority warned that as well as the grant settlement it has major concerns over “fundamental changes to the way councils are funded”.
The changes see the introduction of localised business rates and localised support for council tax – areas previously overseen by central government.
A council statement read: “The government originally consulted councils on retaining 100 per cent of their net business rates – but has now ruled that the figure will be just 49 per cent, with one per cent passed to the Fire Authority and 50 per cent passed to the government.
“It means the council will be exposed to any decrease in the number of businesses within the borough – leading to a direct impact on council finances and its ability to fund services to those who need them.
“Councils will also have to shoulder more of the burden with the help given to vulnerable council tax payers.
“Council tax benefit will disappear and be replaced by discounts – administered by local councils.”
Council leader Marie Rimmer said it was a matter of concern that the government had not funded this transfer of responsibility fully – and meant working age families who previously received full council tax benefit will have to pay at least £3.57 per week in council tax.
It will leave thousands of working St Helens families – some living in the poorest communities – facing a further squeeze on their household budgets.
Rimmer said: “The settlement introduces the most radical changes to the funding of local government in a generation with the introduction of the localisation of business rates and the localisation of support for council tax.
“These two government policies fundamentally affect the distribution of funds, the source of those funds and the risk profile facing this council and local government generally.
“The redistribution of business rates and council tax support grant will cost the people of St Helens millions of pounds - but the system helps people in the more affluent South East of the country.”
Councillor Rimmer said the government’s austerity measures, coupled with the possible future deterioration in the economy, made her fear for the future.
She added: “Despite the limited safeguards put in place by the government, we’re now at the mercy of market forces and will find it increasingly difficult to control our own destiny The latest settlement, published on December 19 last year, covers the financial years 2013-14 and 2014-15 - the third and fourth years of the government’s austerity plan.
This has already cost St Helens Council £36million in loss of central government revenue grants – rising to £50 million by 2014-15.
Furthermore, says the council, it has lost the Building Schools for the Future programme and the reduction in general programmed capital investment support of 26 per cent.
The council says it continues to “prioritise services to vulnerable adults and children’s social care”.
However, the future of Sutton swimming pool and the mobile community library service are among the early examples of services under scrutiny.
The council’s cabinet will consider the issue when it meets on January 9.
Comments(51)
pitbullboxing
says...
8:20pm Mon 7 Jan 13
co.uk/politics/2010/
mar/25/alistair-darl
ing-cut-deeper-marga
ret-thatcher
Here , Darling saying they would cut deeper than Thatcher - would Rimmer be moaning if it was Darling doing this and blaming the government. Go and tell a different story Marie , and let somebody else have a turn.
Sankey
says...
10:42pm Mon 7 Jan 13
saintsfan
says...
10:44pm Mon 7 Jan 13
Sankey
says...
10:49pm Mon 7 Jan 13
Sankey
says...
10:52pm Mon 7 Jan 13
Sankey
says...
11:02pm Mon 7 Jan 13
Do a google on st helenscouncil accounts last published 2011 go to page 42 and you will see marie land is sitting on £192m of reserves yes you read that right £192m, of which (from memory) £132m are usuable. Overall the nations councils are sitting on over £6 b of reserves. Now if this is not a rainy day then tell me what would be one. Stop spouting in the star marie AND GET DOING YOU JOB. You have been hansomely paid for enough years
Sankey
says...
11:04pm Mon 7 Jan 13
sthelenslass
says...
11:13pm Mon 7 Jan 13
Sankey
says...
11:27pm Mon 7 Jan 13
sthelenslass
says...
11:57pm Mon 7 Jan 13
smith&weston
says...
12:29am Tue 8 Jan 13
anthonywilson
says...
1:49pm Tue 8 Jan 13
Cllr Rimmer needs to be reminded that perhaps if the last government had put more safeguards in place and better more effective controls of the banking and financial sectors instead of courting them so much we wouldn't be at the mercy of market forces to the same level and the damage caused by the disasterous world wide financial crash to the same extent would not have occured. None of our political pygmys stand up and really be counted. In Iceland (who the mass media normally likes to keep silent about, I wonder why?) the economic situation is improving because different corrective action was taken. http://azizonomics.c
om/2012/12/08/the-ic
elandic-success-stor
y/
jumper
says...
3:10pm Tue 8 Jan 13
pitbullboxing
says...
4:50pm Tue 8 Jan 13
om/watch?v=FwCUNTP4Z
go
Watch this - Rimmer going on about healthy eating and promoting healthy lifestyles - whilst allowing every take away under the sun to open up in her borough!!
Sankey
says...
4:56pm Tue 8 Jan 13
Chief Executive – Carole Hudson £150k
Director of Urban Regeneration and Housing £115
Director of Environmental Protection £112
Director of Children and Young People’s Services £98
Director of Adult Social Care and Health £110
Assistant Chief Executive (Finance) £103
Assistant Chief Executive (Legal and Administrative Services) £91
Assistant Chief Executive (Asset
Management and Construction Procurement) £97
Head of Corporate and Community Safety £ 81
Head of Policy and Performance £ 81
Head of Human Resources £81
Head of Public Affairs £81
Sankey
says...
5:02pm Tue 8 Jan 13
Sankey
says...
5:09pm Tue 8 Jan 13
http://www.sthelens.
gov.uk/media/313889/
unaudited_statement_
of_accounts_2011-12.
Sankey
says...
5:15pm Tue 8 Jan 13
Sankey
says...
5:35pm Tue 8 Jan 13
Bill Bradbury
says...
6:30pm Tue 8 Jan 13
As I have written many times before you have got to hand it to Cameron he knows where to shift the blame.
On the subject of balances Councils are LEGALLY have to keep a certain proportion of its income as reserves. I am not sure to what some of the fantastic figures quoted by the Anti-Marie brigade are reserves or not.
As to the cost of Chief officers and the like all Councils pay on the same rate which is yet another redherring that the gullible public has been sold by Cameron which I call the race to the bottom the public service workers such as teachers, health service workers,have become public enemy Number 1 with their index-linked pensions, (sorry "GOLD PLATED PENSIONS") and a salary structure worked at over the decades which those that "have not" wish to destroy may be out of envy.
I say let's have a Tory Local Council and let's see where that will get us or will money Magically appear.
When I have time I will comment further on the bile written above. Funny nobody has blamed Brown!!? They will!
Sankey
says...
7:15pm Tue 8 Jan 13
Sankey
says...
7:39pm Tue 8 Jan 13
saintsfan
says...
9:28pm Tue 8 Jan 13
As for Bill Bradbury's comments: to begin with, Bill, you might have noticed that we do not have a Tory government in power (if we had, then the deficit would have been dealt with far sooner). We have a coalition government. Therefore there are compromises all the way down the line and both parties are equally responsible for the decisions made at national level. It was a declared intention of both the Tories and the coalition to localise power, which IMO is a Good Thing, because it places responsibility where it should be: in the hands of the local people who know the local landscape. It also stops local councils from taking the easy way out and blaming central government. They have to be held accountable by local people and that is exactly what is now happening. That is a very, very good thing because, believe me, there has been terrible waste at local government level for years. If only local taxpayers knew just how much waste there has been they would be shocked.
Sankey
says...
10:07pm Tue 8 Jan 13
Sankey
says...
10:19pm Tue 8 Jan 13
Bill Bradbury
says...
10:33pm Tue 8 Jan 13
I cannot get around your logic that when the government cuts budgets the "easy way out" is to find all this money that is sloshing about uspent. I will be asking these questions myself to discover this pot of unspent Gold that will save services.
I am not going over ad ininitum where the blame lies for the deficit but prefer to believe evry economic survey free of the Tory Press spin. Borrowing under this Government has increased and unless you believe in fairies, most economic forecasts are not good for a variety of reasons, China, the Euro. the American economy, oil prices,the greedy banks and bankers, millionaires tax evasion,-- the excuses are endless except the Tories on this web-site will always put it down to Labour and Brown and that arch deamon Marie Rimmer.
Now lets us examine cost saving by halving (generous??) all Chief Officers salaries, and cutting Cllrs down to one per ward, that is if you could get any takers for it would be impossible to pass or read legislation attend meetings deal with constituency matters and all the other jobs I know they do.
Looking at Sankey's figures Officer Salaries come to just over £1m, throw in roughtly the £4,800 cllrs salaries, (more if you are a portfolio holder) might save £100,000 or so, in the scheme of things £1.1 m or say £1.5 m saving goes nowhere in proping up public services and is "back pocket change".
As to me defending my "cronies" those who know me in the party and out is that I have no cronies and prefer to think for myself. Therefore as I have constantly mentoned to my own Cllrs. it's about time we heard from them but unfortunatley they are "gagged" under rules that do not serve us well. As in all parties,- Tories as well,- there are power bases you take on at your peril, as my good friend Mike Perry would agree. You rarely get cllrs writing on this subject and giving us the facts rather than the invective from those who know very little. Why one would ask? It gets very lonely in this Star comment wondering from where my Labour colleagues awake.
Speaking now as Chairman of Billinge Chapel End Parish Council, Pickles has reneigned on a promise to protect Parish Councils from the loss of precept this year of approx. 250 hous-hold which is roughly approaching £6000. So we can either put up our precept,cut what we are holping to spend on the Community which is a community Orchard and Plots for growing food etc. spend what little we have in reserves, which once gone cannot be re-built. "Savings" if any in the Parish scheme of things ammounts to very little. Parish Cllrs do not get paid and never claim for attending meetings.The only expenses claimed is petrol in attending a NALC meeting in Preston Town Hall and training.
Therefore please stop reading the Tory Comics and read some independent think tanks about how we can get out of the mess which I remind you all had your noses in the spending trough of the 2000 plus years. Never heard one Tory complain at the time until the banking crash came. How we loved our cards and house prices rocketing.
There is a lot of hypocracy about and people with highly selective memories.
PS my daughter was told by her Doctor that hernia, piles and varicose vein ops. now have to be paid for. A "free" health service? Pull the other one. The Health Sevice is being privatised along with schools by Academies. Gove is already telling hedas to sack their current Governors and appoint those with businesss acumen very similar to the independent school set up. He also suggest that Chairs of Governors get paid. Now Frankly et al what would be your going rate?
chasmcn
says...
10:40pm Tue 8 Jan 13
Sankey wrote:So you are saying Sankey that we hand over the running of the council to the likes of Serco ,G4s or Capita .
st helens does not pay its executives any more than other local authorities but that misses the point. In the labour years the view was we need good people at the top to manage the councils. What should have happened is an influx of new blood from insustry etc to reform local government and bring new ideas. What actually happened was the existing incumbents declared themselves good people and tripled their pay. Town clerks became chief executives overnight. Its an entirely internal market to local government and i wager none of these people would get a third of that pay in the external market. If you look at the accounts there is a large tier below the executive at £50k plus add to that the councillors and the hidden expenses which can amount to a **** good living in addition to their day job, what we have is a small clutch of people doing very well and the rest of the town outside the magic circle either on the dole of paying council tax which has effectively doub led. Then we get the likes of rimmer talking the hard luck story while none of this waste is addressed and the only cutbacks are to front line services and the only people who lose their jobs are the low paid operational staff on the council or their suppliers. These are the last people who should be cut back NOT THE FIRST.
The CEO of Serco received £1,916,843 in pay with share rights etc this went up to £5.mill ,Serco are receiving £16.5 billion of public money in running local services around the country which it makes a fantastic profit for its shareholders at the tax payers expense
The CEO of G4s In 2009 he made £3.8 million in salary, bonus, share options and extras.shhh i wont mention the Olympics
The CEO of Capita his salary for 2008 was a whooping £10million paid from contracts given to them by the tax payer but he came a cropper when he faced his disgruntled employees wanting extra pay waving the company's annual report at them it was pointed out to him that his £14,000 a week in the report was more then they earned in a year .
We all know how good privatisation was suppose to be for us eg gas ,electricity,water, railways and its cost , if you think its going to be cheaper and a better service i dont think so, we have had 35 years of this neo liberal garbage stuffed down our throats by all parties .Its a race to the bottom and joe public is getting there fast
Sankey
says...
10:52pm Tue 8 Jan 13
chasmcn
says...
10:57pm Tue 8 Jan 13
Sankey wrote:rubbish its all going private like the NHS and education the big private companys dont put money into the tory party for nothing
Reading the primary article again its clear central government has recognised councils have been wasting money at the expense of the local economy. St Helens accounts and the £6 billion overall councils are sitting on seem to demonstrate this. I suspect the game is now up and we should see a dimishing role for councils (whoever is power) and localised control and probably an increased role for community groups and the local chamber. Can't come too soon for the people of st helens who are sick of public services being used as political football, sick of 1100 front line jobs going and the fat cats remaining intact, sick of the council sitting on £120m cash extracted via excessive business rates while the only new jobs in st helens are a new macdonalds. And sick of being made out to be fools by the council leader.
another observation your saying that these community groups and local chamber will control our local authority you don't identify them who are they ? give us a example will we be allowed a vote
Sankey
says...
11:04pm Tue 8 Jan 13
Sankey
says...
11:11pm Tue 8 Jan 13
Sankey
says...
11:39pm Tue 8 Jan 13
That still leaves an exceptional sum in reserve.
The only explanation I can think of is the rest is earmarked for future losses in grants from the government and other declines in income. E.g the government has realised they have been screwing the public and are now grabbing it back.
If so this makes a mockery of what Marie Rimmer has been telling us and the council has been in effect overcharging.
Perhaps the council or one of its officers could provide an explanation ? i am sure there is an explanation like i say we cannot just look at a raw balance sheet. But what is it?
chasmcn
says...
8:11am Wed 9 Jan 13
Privatision of council services will not reduce my council tax it will go up to pay the shareholders as privatision is all about profit not value for money service
As we seen last night in the vote in the commons at present iam working paying my tax and NI contributions if i come out of work i will receive less benefit as it will be below the rate of inflation but my contributions are not going down those in work are paying out to receive less when they need it your campaign of neo liberal ideas just take money away from me in poor pay and poor service as we have seen from privatised industry's already.
Sankey
says...
9:55am Wed 9 Jan 13
Yes I suppose they might have liabilities falling such as the pay issue and i expect they need substancial investments to pay for the councils pension liabilities.
But the money they are sitting on does seem extraordinary particularly in relation to warrington which has a far lower usable reserves figure.
Sankey
says...
10:01am Wed 9 Jan 13
jumper
says...
11:15am Wed 9 Jan 13
Bill Bradbury
says...
11:57am Wed 9 Jan 13
Eric Pickles was referring to the balances that Councils have to legally hold. But that's the Tory press for you such as The Times today coming out with a "pearler" on pensioner's fuel allowance saying if it is cut Pensioners on a joint income of £25,000 would be £200/year worse off but if paid as part of an allowance to the state pension AND TAXES they would be only £29/year worse off.
So that's OK then a "lose lose" scenario for a group which this Government is casting its envious eyes upon as the only group with assets that can be robbed via care homes and having to sell their homes. It looks as though pensioners are to be asked to balance the books.
So the point of this thread maybe about the effects of any cuts but are also to be taken into account of those who rely on those services.
Chasman has got it right. Not one intiative by the Tory-boys and their running dogs will see one iota of difference to those who are currently struggling on low incomes or being out of work who I don't include the work-shy. Pickles promises Parish councils would not be part of any cuts due to the Localism Bill and the now defunct "Big Society" My Parish will lose £6000 loss of income due to his policies. Another broken promise but "we are all in this together?"
Rail users being ripped off with no foreseeable benefits except to continue standing and money rolling into the pockets of the Rail Franchises.
I wrote before the election in this column and the Star that the Tories had unfinished business to stuff the P.O.A, the F.B.U. and the Teacher Unions. They have all been well and truly stuffed and privatised with cuts.
The Local Education authority backs all Tory legislation as before long it will cease to exist if all schools are "Academised".owned by whoever on pay scales that their reduced budgets can afford. It is already happening in neighbouring Councils.
Finally I cannot get my head around those who write to this thread cheering cuts and blaming those who have to carry them out. When all public service workers are on minimum wage perhaps these Tories will feel a sence of gratitude and relief to Cameron and friends. PM question time today will end up as usual with the PM qwuestioning the Opposition over what they will do. We are not in office they are. As the saying goes "You have seen nothing yet" over the results of cuts.
jumper
says...
12:05pm Wed 9 Jan 13
Sankey
says...
12:22pm Wed 9 Jan 13
Sankey
says...
12:26pm Wed 9 Jan 13
Bill Bradbury
says...
1:04pm Wed 9 Jan 13
I am aware in the past "unspent" monies have been put into other budget heads and used, apart from balances, to protect say the Town Hall burning down or even a school, (if it is an Academy I hope they have taken out the appropriate insurance and not hope the LA will bail them out).
These "assets" you refer is a question if they can be sold or if they are worth anything at all. If the can once they have been thrown into the pot then in future years there will be no safety net and services wil close.
As I have pronised in the past as soon as I know anything so will you unless my Cllrs. decide to "clam up"
As I have written Marie or other Cllrs should be the one's answering your questions and if not why not?
smith&weston
says...
1:19pm Wed 9 Jan 13
jumper
says...
1:49pm Wed 9 Jan 13
Bill Bradbury
says...
2:04pm Wed 9 Jan 13
jumper wrote:Not a bad idea. You would be surprised how much they do or perhaps how little?
A bit of the main thread but we should have a log of what our reps do ,some idea may come out so has we can add up where some of the pennies are going .
jumper
says...
2:18pm Wed 9 Jan 13
Sankey
says...
7:30pm Wed 9 Jan 13
saintsfan
says...
7:48pm Wed 9 Jan 13
Sankey wrote:People seem to have forgotten that St Helens Council raised the Council Tax by 2% last year, which of course is extra revenue, and they have also forgotten that the current council administration promised to bring back free parking, yet of course the parking charges remain. Both revenue streams are handy cash cows and yet even with them St Helens Council are apparently unable to make the books balance. I seem to remember the swimming pool at Sutton being under threat of closure previously and I suspect Rimmer is exploiting the situation there purely for political purposes, as is her way. Alas, the people of St Helens will never learn: they keep bringing the old guard back no matter how many times their incompetence is made clear, not least by themselves and their continual harping.
Thanks bill it would be interesting to know what the answer is. I do understand a council cannot sail close to the wind but those reserves CFO seem excessive and one wonders why St. Helens needed to put the council tax up and could have carried a couple of years given the recession
jumper
says...
7:49pm Wed 9 Jan 13
saintsfan
says...
1:26pm Sun 13 Jan 13
anthonywilson
says...
7:46pm Sun 13 Jan 13
saintsfan wrote:East Orient haven't gone bust either as they have another restaurant in Warrington which is still open. (There's a Notice on the door)
Just a random something from nowhere, I noticed this morning that the Chinese restaurant opposite Cafe Nero has closed.
Cathay Dynasty in Hall Street also closed in the Autumn.
Not really a surprise considering how many Chinese eateries have opened in the area. They simply cannot all survive.
pitbullboxing says...
8:19pm Mon 7 Jan 13