We can handle £30m budget loss — Sykes

OLDHAM Council will lose almost £30 million in the next two years as part of radical Government spending cuts.

The council says it is “in good shape” to handle the challenging budget settlement announced yesterday by Communities Secretary Eric Pickles.

Oldham will see its allocation slashed by £21 million next year — a 8.23 per cent reduction in “overall spending power” followed by a further £8.4 million in 2012/13 — 3.63 per cent.

Mr Pickles caused surprise by producing figures measuring reduction in overall spending power at each town hall — rather than loss of government grants.

Because the formula included council tax receipts, the headline percentage cuts were much lower. It also included extra cash to head off a social care crisis, raided from NHS budgets.

But Mr Pickles described the settlement as “fair and sustainable” and said he had listened to pleas to “protect councils most reliant on central government funding.”

Oldham Council leader Howard Sykes (pictured) said: “We knew this was going to be challenging but the council is well-prepared and has taken all the necessary steps to ensure we’re ready for what this brings.

“We’ve been very focused on our finances over the last couple of years and now that the council’s books are in shape we have a clear idea of where the pressures will be. Despite the many challenges that the settlement causes the Council has been working on its budget planning for sometime well in advance of the government announcement.”

Oldham’s Cabinet member for performance and value for public money, Lynne Thompson, added: “The situation currently facing local government is very challenging.

“We are putting a lot of work into ensuring Oldham Council is well-positioned.

“This year we were among the first 10 councils in the country to close the books, we’re on budget and for the first time in a long while we know how much we’re spending and where we’re spending it.

“All of that hard work means that we are well-placed now to manage the budget reductions we’re facing. In future years we will need to continue to scrutinise our finances even more carefully and consider how we can use the funds we have available and maintain good value for money services for the borough’s residents.”

Trade unions warned the number of council jobs either cut, or threatened with the axe, in recent weeks was now almost 74,000. The GMB said 79 local authorities in England, Wales and Scotland had issued warnings of job losses, involving the union in statutory 90-day consultations.

In addition, Police Minister Nick Herbert confirmed Greater Manchester Police will see its budgets slashed to £485.9 million in 2011/12 and £454.4 million in 2012/13.

Every police force is seeing a 5.1 per cent reduction in cash in 2011/12 and 6.7 per cent in 2012/13.