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Ealing Council to cut costs by more than £50million

Sun 27 Jun 2010
Ealing Council’s Cabinet has started a process to reduce the authority’s budget by more than £50million by April 2014.

This challenging target is necessary because of major reductions in government funding to councils across the country over the next few years.

Ealing Council expects its core government funding to reduce significantly from April 2011. Because some budgets –i ncluding schools and benefits– are ‘ring fenced’ and therefore cannot be reduced, there could be a reduction of 25% in other budgets instead.

The impact of the government’s emergency budget and the planned public sector spending review in the autumn, may see the budget reduction target rise further.

To reduce the impact on the borough’s residents and to help protect the local economy, the council has already pledged to freeze council tax again next year. Councillors have also set out plans to freeze their own allowances over the next four years.

Councillor Julian Bell, Leader of Ealing Council said: "Everyone knows that public funding is about to be severely cut and so it makes sense to start planning for these reductions now."

"We were elected in May based on our commitment to five top priorities and I am determined to deliver on these to make a real difference to the lives of local people."

"Our pledge to protect frontline public services while ensuring value for money has never been more important."

This year the council is already reducing its budgets by £8.3million. It was also told on 10 June that it would not now get £1.8million of government funding for area-based grants, including funding for children’s services.

To respond to the reduced funding the council is reviewing all recruitment and is implementing a review of its management and staff structures.

Councillor Yvonne Johnson, Cabinet Member for Finance, said: "Although the challenges ahead cannot be underestimated, the council has an excellent track record in managing its finances and adapting to change."

"No decisions have yet been taken about where the reductions will be made. Over the next six months we will look at every service to find ways of delivering more for less, reviewing all spending and income and seeing if services could be organised differently to reduce costs."

Details about proposed budget reductions will be announced later in the year after the council undertakes a full budget review in late 2010.


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