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The future of local authority services in the West Midlands is under threat from a growing financial crisis, with significant cuts already being made to statutory adult care and children’s services, says new analysis published today (Friday) by the TUC and the Centre for Local Economic Strategies (CLES).

date: 14 January 2015
embargo: 00.01hrs Friday 16 January 2015

The future of local authority services in the West Midlands is under threat from a growing financial crisis, with significant cuts already being made to statutory adult care and children’s services, says new analysis published today (Friday) by the TUC and the Centre for Local Economic Strategies (CLES).

The report Austerity Uncovered looks at the impacts of austerity, focusing upon how changes in publicly-funded services affect both people and places across the country, now and in the years to come.

The report, commissioned by the TUC, shows that the government’s austerity plans have considerably increased in scale, with cuts extending well into the next parliament.

The report shows that:

• Changes to the government’s deficit reduction programme since it was first announced in June 2010 mean that we are now only half way through a nine year programme of austerity, when we should have been three quarters of the way through a six year programme. The government’s original proposals expected austerity to amount to 6.7 per cent of GDP. This is now expected to reach 10.3 per cent, increasing in cash terms from £120 billion to £210 billion.

• By 2015–16 the government will have reduced its funding to local authorities by an estimated 37 per cent. A significant funding gap is emerging within local government as a result of this. The total funding gap is forecast to increase at an average rate of £2.1bn per year until 2019–20 when it will reach £12.4bn.

• The impact of public sector cuts is being disproportionately felt in the West Midlands, with spending per person now at 37 per cent lower in the West Midlands than the national average.

• The case study of Dudley Metropolitan Borough Council, found that the authority was faced with significant further cuts, having to find savings of £73.7m in the next three years.

• Dudley will experience significant cuts in environmental services, with over a quarter of million expected to be cut from the maintenance of parks, open spaces and verges and further cutbacks in road and footpath maintenance.

• But there will also be cuts in key service areas, losing about a third of its budget from its Adult, Community and Housing directorate and making savings of over 20 per cent in children’s services. There are likely to be further cuts to youth services, with a budget that has been halved since 2010/11.

Austerity Uncovered identifies a number of common themes emerging from the nine local case studies. These include: a marked move away from the principle of universal services, with increased use of rationing, targeting and thresholds; significant cutbacks in adult care, particularly home care; and increasing levels of outsourcing of services in some cases. However, the report also shows how some councils, such as Dudley, have consulted with local communities to help save services and identify spending priorities, with plans for youth services in Dudley modified as a result.

Midlands TUC Regional Secretary Lee Barron said: “This report is damning and highlights how this government is shredding local government and public services.

“Unfortunately, the Dudley case study is replicated right across the West Midlands. Public services and local government are facing a real fight for their future. What’s more, those local authorities with the greatest need have been the worst hit.

“We need a new approach to public services and a fairer funding settlement for local government. The people of Dudley and the West Midlands as a whole have suffered enormously in the years since the great crash. The least that this region deserves is strong local government and decent services that put people first and help build a more resilient and successful regional economy and society.”

The report makes a number of recommendations on how to mitigate the impacts of austerity. These include: a needs-based approach to funding settlements that take into account places with higher levels of social and economic deprivation; further devolution of resources and decision-making powers at the local level; develop a long-term plan for increasing funding for adult social care; a high-level commitment to improve child wellbeing and reduce inequalities; more intelligent commissioning of services that promote the living wage and reduce the use of zero-hours contracts; and more collaboration with public service unions and community groups to encourage local strategies and solutions.

CLES Chief Executive Neil McInroy said: “This report outlines the wide range of impacts on people and communities. The scale and depth of the austerity cuts are harming both our present and future.

“This research tells us that austerity affects all the country, though it bites deeper in poorer areas. In keeping with other post-industrial areas of the country, the West Midlands has acute deprivation across the region, there is a low skills base and health and social issues to contend with. Austerity is compounding these issues.

“We need to get the priorities right and appreciate that austerity means people’s needs are no longer being met like they should be. Without considered decisions based on the needs of people and places, now and into the future, we risk causing irreversible damage.”

NOTES TO EDITORS:
- The West Midlands TUC/CLES report can be found at: http://www.tuc.org.uk/sites/default/files/West%20Midlands%20Final%20Report_1.pdf
- The national TUC/CLES report can be found at: http://www.tuc.org.uk/sites/default/files/TUC%20Final%20Report%20Dec%2714_1.pdf
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @tucnews
- CLES are the UK's leading member and research organisation dedicated to economic development, regeneration and local governance www.cles.org.uk

Contacts:
Media enquiries:
Adrian Nolan (CLES)  T: 0161 236 7036   M: 07545 609511   E: adriannolan@cles.org.uk
Rob Johnston TUC Midlands T: 0121 236 4454  M: 07879 497291  E: rjohnston@tuc.org.uk

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