Reading council leader blasts public sector cuts by government

As I write this, the new Chancellor is on the verge of announcing his Autumn statement. None of us need the detail to know already that it will be bad news for our public services.

The noise is that Jeremy Hunt, alongside this month’s Government, is leaning towards substantial cuts in an effort to row back the damage caused by his predecessor’s shambles of a mini budget – although the horse has almost certainly bolted in terms of the damage caused to mortgage payments for years to come.

It was public services, of course, which bore the brunt of Austerity (Round One) under the previous coalition Government.

That was particularly the case for local government, with many councils closing libraries, leisure centres, youth provision, and a raft of preventative services to keep their heads above water. Unlike NHS Trusts, local councils are not permitted by law to overspend on agreed budgets.

The impact of austerity has subsequently been compounded by the pandemic. Council incomes have yet to reach pre-Covid levels (it’s arguable as to whether they ever will) and there are now more residents in need of support.

READ MORE: Thousands of people in Reading benefit from cost of living payments

Add in the significant budgetary impact of soaring inflation and you can see why local authority finance officers aren’t exactly looking forward to the Chancellor’s announcement.

Last week the speculation was that, alongside a series of ‘stealth taxes’, the Prime Minister and Chancellor were considering removing the cap on council tax levels.

This is straight from the Conservative playbook. Why provide councils with a real and sustainable funding solution when, instead, you can drive their budgets into the ground and leave them with little option but to hike council tax.

By placing the burden on hard-pressed residents to help protect essential public services, the Conservatives – and this is the important bit – avoid any of the flak. We’ve been here before. When the Government talk about handing local councils more ‘spending power’ they are assuming council tax increases, which tells its own story.

READ MORE: Reading council to spend near £30 million to build 211 homes

Reading is in a better position than many. You don’t have to look too far from home to see a number of local authorities in desperate financial trouble. Some of that is the result of bad decisions, but financial resilience is now virtually non-existent at some councils thanks to years of cuts. Even neighbouring Wokingham are, understandably, talking about the need to make difficult decisions on services.

I fear many, if not most, local authorities will be in the same position. As the Government’s cost of living crisis bites, it is local councils who will once again be the first port of call when it comes to homelessness and caring for the vulnerable, but council budgets are now worth far less because of higher prices.

In Reading, we have proved our resilience over the years. Sound financial planning means we have been able to maintain major investments in infrastructure projects for residents, including new swimming pools, a record investment on roads, new and refurbished rail stations, and desperately needed new affordable homes.

That’s not to say our own budgets won’t be under considerable pressure going forward, because they will. And, all the while, the silence from Government continues on an adult social care funding crisis that they promised to solve a decade ago. Putting financial spreadsheets aside, the human impact is appalling.

Yet when we talk about public services, it is much more than local government. School budgets are under enormous pressure. All state-funded schools are financed via a national formula which is only increasing nationally by 1.9% for 2023-2024, set against current inflation rates of over 10%. The impending decision on teachers’ pay means that the situation is looking increasingly challenging.

You will also have seen that the Royal College of Nursing last week announced industrial action for the first time in its 106-year history. This follows the systematic underpayment and undervaluing of nurses and health professionals by this Government, leading to a recruitment crisis right across the profession, which is also repeated in adult social care. It goes without saying that there is never a good time for nurses to strike. But, as someone said last week, it seems strange to be told you are too important to strike, but not important enough to be paid a decent wage.

There was a short period of time at the height of the pandemic where, on the face of it at least, Government showed a renewed appreciation of the role of public services in our society.

I know from speaking to people on the ground in Reading that this valuable work remains even more important than ever. But until we have a Government which truly values public services, instead of taking them for granted, the sad decline in the quality of support for health, social care, education, justice, and the local environment is inevitable.