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Councils await funding cut as Localism Bill unveiled Councils await funding cut as Localism Bill unveiled
(about 1 hour later)
Councils in England are to learn later how much the funding they receive from central government will be cut over the next two years. English councils are bracing themselves for big cuts in central funding over the next two years.
Many are expecting a substantial reduction amid the spending review. Cuts of about 27% over four years were outlined in the spending review - councils will be told how that will affect them individually.
Ministers will also reveal their proposals to give groups in local communities greater scope to take over control of some services from councils. Local government expert Tony Travers said the cuts would be the worst since 1945 and would affect all services.
They say the Localism Bill will lay the foundations for what David Cameron calls "the big society". But ministers are also unveiling plans to help local community groups run some council services for themselves.
The bill also proposes a change in the role that councils play in finding accommodation for homeless families. Communities Secretary Eric Pickles will publish the Localism Bill later, which is expected to include:
  • Giving local people and organisations the right to buy community assets like shops, pubs and libraries. If a council decides to sell a property community organisations will get extra time to develop their bid.
  • Communities can question how services - such as children's centres, care homes and transport - are being run and potentially take them over.
  • More power for local people to overrule planning decisions, decide where new homes should go and protect green spaces.
  • Powers to create directly elected mayors in 12 cities
  • Powers for people to approve or veto "excessive" council tax rises
The bill also includes plans for a change in the role that councils play in finding accommodation for homeless families.
Instead of being obliged to house families who are eligible, councils would be able to discharge their responsibilities by finding them private rented accommodation for at least 12 months.Instead of being obliged to house families who are eligible, councils would be able to discharge their responsibilities by finding them private rented accommodation for at least 12 months.
'Nothing like this''Nothing like this'
The financial settlement for England's councils will be announced by Mr Pickles in the Commons later.
Tony Travers, from the London School of Economics, said the cuts would be the worst for local councils since 1945, affecting all services including social services for the elderly and children.Tony Travers, from the London School of Economics, said the cuts would be the worst for local councils since 1945, affecting all services including social services for the elderly and children.
"There's been nothing like this in modern times," he told the BBC."There's been nothing like this in modern times," he told the BBC.
"If you look at, for example, Denis Healey's efforts in the late '70s to cut public spending, it had a one or two year impact on public expenditure - including on councils - but nothing like this."If you look at, for example, Denis Healey's efforts in the late '70s to cut public spending, it had a one or two year impact on public expenditure - including on councils - but nothing like this.
Localism is a key part of the Cameron agenda and is regarded as central to building the so-called "big society".Localism is a key part of the Cameron agenda and is regarded as central to building the so-called "big society".
The aim is to empower local residents and communities so they, and not the state, take more responsibility for services and decision making.The aim is to empower local residents and communities so they, and not the state, take more responsibility for services and decision making.
The big question though is whether this localism agenda can be delivered without extra money.The big question though is whether this localism agenda can be delivered without extra money.
Critics suspect at a time when local councils are having to cut budgets by 27% over four years placing responsibility on local residents is just cover for cutting council services.Critics suspect at a time when local councils are having to cut budgets by 27% over four years placing responsibility on local residents is just cover for cutting council services.
Voluntary and community groups are equally sceptical that they will be able to take up the slack if their funds from local government are being cut back.Voluntary and community groups are equally sceptical that they will be able to take up the slack if their funds from local government are being cut back.
But perhaps the biggest challenge to the localism agenda is the fact that the one ingredient it seems all government reforms require if they are to be a success is - money.But perhaps the biggest challenge to the localism agenda is the fact that the one ingredient it seems all government reforms require if they are to be a success is - money.
"This is going to be for at least four years, and will reduce local government spending by 15% in real terms over that time.""This is going to be for at least four years, and will reduce local government spending by 15% in real terms over that time."
He said councils estimated 140,000 jobs could go by the end of the process - but conceded that figure had been disputed by Communities Secretary Eric Pickles.He said councils estimated 140,000 jobs could go by the end of the process - but conceded that figure had been disputed by Communities Secretary Eric Pickles.
Mr Pickles told BBC Radio 4's Today programme that local authorities would see a reduction in local authorities' spending - but said councils could still provide a "decent service" and save money through changes like sharing chief executives and the way they buy goods and services. Mr Pickles told BBC Radio 4's Today programme councils could still provide a "decent service" and save money through changes like sharing chief executives and the way they buy goods and services. It was "no longer viable" for councils to have their own legal departments, education departments and planning departments, he said.
He added: "I believe it is possible to cut significant sums out of local authorities by simply improving the way local authorities operate."He added: "I believe it is possible to cut significant sums out of local authorities by simply improving the way local authorities operate."
"They've simply got to wake up to the fact that it is no longer viable to have their own chief executives, their own legal departments their own education departments, their own planning departments - they've simply got to put this together and they've got to look for ways to see these services provided in partnership with local communities."
Mr Pickles said: "I'm expecting local authorities to be able to provide more for less, I'm expecting them to be able to provide a reasonable level of service and I think local authorities shouldn't have some kind of alibi in feeling that these have been imposed from the centre and therefore they've got to provide every single cut on the front line."Mr Pickles said: "I'm expecting local authorities to be able to provide more for less, I'm expecting them to be able to provide a reasonable level of service and I think local authorities shouldn't have some kind of alibi in feeling that these have been imposed from the centre and therefore they've got to provide every single cut on the front line."
For Labour, Shadow Communities Secretary Caroline Flint told the BBC councils had been told to expect 27% cuts over four years, which were being "front loaded" - rather than being spread more evenly over the period - with 10.2% in the first year.
She said all councils wanted to "plan for efficiencies" but it was a "pretty hollow offer" from the government, which was offering devolution of local services by "holding a gun to the head of local authorities through these cuts".
The Localism Bill includes plans to make councillors approve and publish pay rules for their chief executives, powers to create directly elected mayors in 12 cities and powers for people to approve or veto "excessive" council tax rises.The Localism Bill includes plans to make councillors approve and publish pay rules for their chief executives, powers to create directly elected mayors in 12 cities and powers for people to approve or veto "excessive" council tax rises.
The government says its "community right to buy" will give local groups legal rights to name assets like shops, pubs, libraries and leisure centres on a council "most wanted list" - if it is put up for sale, local people will be given time to prepare a business plan and raise the funds they need to bid for it.The government says its "community right to buy" will give local groups legal rights to name assets like shops, pubs, libraries and leisure centres on a council "most wanted list" - if it is put up for sale, local people will be given time to prepare a business plan and raise the funds they need to bid for it.
There will also be a "community right to challenge" - giving community groups, parish councils and others the power to challenge and take over a local service. The government says this could include running children's centres, social care services and local transport links. Councils would be obliged to respond to the proposal and if they turn it down, they must publish the reasons.There will also be a "community right to challenge" - giving community groups, parish councils and others the power to challenge and take over a local service. The government says this could include running children's centres, social care services and local transport links. Councils would be obliged to respond to the proposal and if they turn it down, they must publish the reasons.