Promise upheld to freeze council tax

‘The process has been the most challenging in memory’ — Lynne Thompson

COUNCIL chiefs are sticking to their pledge not to raise council tax despite their most difficult budget for years.

The freeze would mean for a household in Band D — the average — the charge will remain at £1,542.83 with Shaw and Crompton and Saddleworth residents paying slightly more through the parish precept.

Oldham Council has published proposals to complete its budget for the next financial year, which will be examined by its performance and value for money overview and scrutiny committee at a meeting on Tuesday.

A report to the committee shows the difficulties the council has had in balancing its budget with Government grants slashed or changed.

The council calculates its loss from grants is £14 million.

The council, which could axe up to 800 jobs, had already found over £15 million of the expected £25 million savings it needs to make.

Proposals to meet the remaining include saving £1 million by reducing the number of senior managers, joint working with the NHS Primary Care Trust and other local authorities, reducing the use of consultants and agency staff, reducing spending on conferences and training, making computers last longer and an increased clampdown on both recruitment to vacancies and purchasing of day-to-day supplies.

A new Social Care Grant from the Government also contributes over £2 million.

Other areas that will impact on residents include a 20 per cent reduction in respite provision for carers, no longer providing a free service for vermin control with a nominal charge of £25 plus VAT and increasing the charges for cremation by £70 to £550.

The council had applied for permission from the Government to borrow £18.6 million to cover redundancy payments and pension contributions but was only approved £4.8 million meaning £13.8 million will have to come from reserves that will need to be restored next year.

Lib-Dem leaders say they are determined to improve residents’ quality of life and are still investing in the Regional Science Centre, apprenticeships, environmental improvements, transport infrastructure and support for jobs in local businesses.

They say priorities, such as clean streets, feeling safe and basic services such as roads, have been guided by public consultation and protected.

Also affected is the Oldham Partnership, which includes other public sector and voluntary groups in the borough.

The partnership needs to save £41.2 million over the next 12 months, another £21.8 million in 2012/13, £14.2 million in 2013/14 and £12.7 million in 2014/15.

But savings of £40.7 million have been agreed leaving a budget gap of £470,000 with work taking place to resolve this as a matter of urgency.

Cabinet member for performance and value for money, Councillor Lynne Thompson said: “The process has been the most challenging in memory.”

“However, we have squared the circle, subject to confirmation of some details of work in progress and grants and do not propose any rise in the council tax.

“The scale of savings is high, as a result of the Government’s programme of reducing the spiralling national debt.

“I am not happy with the settlement and the council has asked ministers to consider further help.

“However, we forecast this and our early preparation has placed us in a better position to deal with it than many authorities, who inexplicably seem to have been taken by surprise.

“There are savings in sensitive areas including social services.

“It is wholly unrealistic to pretend we can make the necessary savings without looking to this area, since it accounts for over half of the council’s spending. What we strive to do, and are doing, is to make efficiencies where they will have least possible impact on service users.”

Labour’s opposition budget proposals are due to be published by January 26.

After Tuesday’s meeting, the Lib-Dem budget will go before cabinet on February 8 and full council on February 23 for approval.