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Local councils to feel Spending Review impact
21 October 2010
Cuts have been introduced to local authority budgets as part of the government's Spending Review.
Announcing the results of the exercise in parliament, chancellor George Osborne stated that local authorities will see a fall of around 30 per cent in their overall capital expenditure over the review period, which runs to 2015.
In addition to cuts to capital spending, money provided in this area by government departments will be reduced by an estimated 45 per cent.
Local government resource DEL, which includes resource and capital expenditure, will drop by 28 per cent, with an overall reduction in revenue grants of around 26 per cent when funding from other departments is taken into consideration.
Operations management professionals may be involved in implementing savings, as they are expected to be generated through smarter procurement, improving asset management, streamlining and merging operations and identifying better ways of delivering services.
Commenting on Mr Osborne's announcement to parliament yesterday (October 20th), communities and local government secretary Eric Pickles stated: "Councils need to be innovative - to change the way they deliver services to get the most for their money and get at problems before they become entrenched."
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