Cameron and Osborne still learning from Clegg and Cable

5.06.00pm BST (GMT +0100) Tue 30th Jun 2009

Bristol East Liberal Democrat Prospective Member of Parliament, Mike Popham has announced that Bristol City Council may have to make savings of at least £30 million over the next three years.

"Severe budget discipline will be needed and it would be helpful if the Labour Government and the Tory Official Opposition would avoid childishly sparing over who will and who will not make cuts. Brown and Cameron need to come clean so that local Councils, such as Bristol, can make firm plans based on solid foundations", he said. Mike Popham is also the Liberal Democrat Cabinet Member for Efficiency and Value for Money. "I am already receiving emails about cuts instigated by the Labour Government without any visible opposition from the Tories that are already happening but being kept quiet. For example, 600 adult learning places on essential courses taking place in the most deprived area of the South West region are going. It is clear from the Government's own plans that current spending is being cut according to any meaningful measure, and anecdotes from local hospitals and other sources suggest that the cuts process has already started", he said.

The Council's new Liberal Democrat majority administration has warned that the city faces a tough time ahead as it emerges from recession. Cuts in government grant to help Britain pay off huge debts incurred during the credit crunch - combined with rising demand for services - may mean £12 million of savings needs to be found next year (2010-11). A further £18 million of savings may have to be found over the following two years. The government is making matters worse by delaying plans for a spending review - including announcements on grants to local councils - until after the general election.

This means that council officers do not have all the information they need to plan ahead. The council faces a financial shortfall on an unprecedented scale. The estimated savings figures are based on information contained in the Chancellor's Budget statement and other economic and financial data. Below-inflation rises in grants to local councils are expected - reducing the city's funding from government in real terms. Other pressures come from growing demand and higher costs for critical services - such as care for the elderly and infirm and people with learning difficulties.

A slowdown in the development of new homes and businesses is reducing the potential for extra council tax income. So what is the council doing about all this? It has already put significant savings programme in place. These include:

· The restructuring of senior management.

· Reorganisation of marketing and communications and learning and development support services.

· Improvements to the way the council commissions some services.

· Reductions in administrative costs and the use of agency staff.

However, these changes are only expected to deliver about £7.5m of the cash needed to balance the books in 2010/11. As part of the authority's response, council leader Barbara Janke is proposing to set up an independent advisory panel - including local business leaders, finance experts and leading academics - to help the council work strategically with other agencies in the city to make best use of joint resources.

Mrs Janke said: "The potential financial implications could represent a massive challenge to the city council and the people of Bristol. "It is really important that we recognise how tough it is likely to be over the years ahead and that this could mean little new growth or investment in local services, some significant reductions in certain areas and even potentially higher council tax bills unless we can reduce spending wherever possible. "I want people to be aware as early as possible of the worrying predictions we are hearing from our financial advisers so that residents have realistic expectations about what can be invested in services and so we can mobilise local MPs and other partners to put Bristol's case for additional funding to government.

"The new advisory panel I am proposing will engage some of the most knowledgeable experts in Bristol and help us to plan strategically with business and government agencies to get the best possible solutions for the city. "As a new administration, we are determined to lead the city in co-operation with all interested groups to put our case to government for a fair deal for Bristol."

Ends

Notes to Editors:

1. The current net council budget (09/10) total £365,203,000. This is financed through:

Government grant, inc the city's share of the national business rate: £186,712,000

Council Tax payments: £174,855,000.

2. Revised projections for the growth of new homes generating council tax income over the next three years are 0.5% per year. Growth over the past four years has been:

05/06: 2%

06/07: 1.5%

07/08: 2.5%

08/09: 2%

3. If no savings were to be made, the worst-case scenario impact on council tax bills (excluding police and fire services) over the next three years would be:

10/11: £12 million = 9% on Band D bill or £118 (rising from £1,313 to £1,431)

11/12: £8 million = 6.5% on Band D bill or a further £100

12/13: £10 million = 7% on Band D bill or a further £107

(percentages and other figures have been rounded up or down)

4. By service area, the net budget for 2009/10 is allocated as follows:

Children and Young People's Services: £84,442,000

City Development: £51,364,000

Corporate Services: £15,374,000

Health and Adult Social Care: £120,857,000

Neighbourhoods: £72,448,000

Other, inc capital financing/contingency £20,718,000

5. Current council tax bands (09/10) are:

Council Police Fire Total 09/10

Band £ £ £ £

A 875.13 107.51 39.09 1021.73

B 1,020.99 125.42 45.60 1,192.01

C 1,170.24 143.34 52.12 1,362.30

D 1,312.70 161.26 58.63 1,532.59

E 1,604.41 197.10 71.66 1,873.17

F 1,896.12 232.93 84.69 2,213.74

G 2,187.83 268.77 97.7 2 2,554.32

H 2,625.40 322.52 117.26 3,065.18