Camden Council and the Cuts

We sent out this short note on the cuts in Camden with our December newsletter, and a couple of people suggested we also post it here. It is simply some selected highlights and some explanation of the process and can't be seen as comprehensive. If there are things constituents want to know more about, get in touch, or come along to the Swiss Cottage Area Action Group meeting on January 26th at the Crossfield Centre.

The Council and the Cuts

This is not the place for discussion of why there is a structural deficit and such like, but we now know a bit more about the Council’s spending plans, and thought a few highlights would be useful.

We now know (minus some loose ends) how much money Camden will get in government funding in 2011/12 – essentially this equates to a reduction in spending power of 6.54% in real terms, with further real terms reductions in the following two years.

The Council needs to set its budget and council tax for 2011/12 by the end of March. But it already knows that it faces a likely “budget gap” of £80-100m it must close over the next three financial years. Sensibly, council officers have already put forward proposals covering all three years – though much of the savings for the 2012/13 and 2013/4 years are only at a headline level at this stage and (rightly) generally subject to consultation. Some highlights:

• Up to 900 council posts will be going, largely but not exclusively by retirement and voluntary redundancies.
• The budget plans assume a two year pay freeze for council staff.
• The total cost of senior managers will be cut by 20% over three years – by deleting posts and freezing salaries.
• In adult services, there will be increased targeting on the vulnerable with some services no longer free to those who can afford to pay. Provision of discretionary services to those without a “substantial and critical need”, such as luncheon clubs will see significant reductions.
• Libraries – by 2013, some £1.6m will be taken out of the libraries budget of around £8m. The Council is proposing the closure of some smaller libraries, as yet unidentified, with consultation throughout 2011 on how to ensure we maintain a good quality library service for less money. Camden currently has the second highest number of public libraries per square mile in the country, and the third highest library costs per 1000 people. (Camden has 13 libraries, Hammersmith and Fulham for example has 6). There will certainly be discussions about whether community groups can in some way run some libraries, but given the integration of the service (inter-library loans etc) this is not necessarily the easiest public service for such “big society” efforts.
• Voluntary sector funding – by 2012 some £2.5m will have been saved out of this budget, out of about £9m. At present Camden funds over 100 groups, from community centres to Hampstead Theatre. We will know more on this when a report comes to the council cabinet in February – essentially there are no significant reduction until 2012 to give some time for organisations to plan, for example sharing buildings, merging services etc.
• Waste and street cleansing – there will be a phased reduction in the frequency of street cleansing, but the once a week rubbish collection does not seem to be at risk. There will be more focus on problem areas, with businesses having to take more responsibility for keeping their areas clean, along with tough enforcement.
• Schools are broadly protected with funding increasing by 0.1% in real terms each year, but there are substantial reductions to subsidy and provision for the early years service, concentrating on help here for those who cannot pay (Camden is currently one of the few places that provides free nursery provision for 3 and 4 year olds, regardless of ability to pay, well above the national statutory requireents and subsidy)
• The Freedom Pass will continue; it is worth noting the cost of this increases much faster for Camden than the rate of inflation for various reasons (it’s likely to be £11-12m next year, up some £3-4m)
• Councillors will lose some staff support for their casework enquiries, we are being encouraged to log and track enquiries ourselves.
• Many fees and charges will increase by more than inflation – for example there will be a £10 fee for collection of an unwanted white good such as a freezer.
• Planning consultation will be rationalised – see in planning section below.
• For better or worse, the idea of merging Camden’s top managers with Islington has been dropped, but “shared services” with Islington and other councils to cut costs are still very much on the agenda.
• In Camden’s own council homes, non-statutory internal repairs will cease, as will non-essential communal repairs. There are also long-overdue proposals to turn around voids more quickly and cheaply.
• The Council will be reviewing the property assets it and the voluntary sector have in the Swiss Cottage and West Hampstead areas (indeed across Camden on a area cluster basis), in order to make limited resources go further – perhaps with fewer but better buildings and some money freed for much needed capital. Consultation with voluntary sector groups and interested individuals is getting underway.
• Last but not least, council tax will be frozen next year in Camden, as it was in three of the last four years. This reflects specific money the government has given to incentivise councils to keep council tax down at a very difficult time.

Overall there is no doubt these are very significant changes to local services in Camden, though they do come after a decade of sharply increased public spending. We neither want to underplay the changes, nor to be alarmist (don’t believe everything you read in the press on this), but to help people understand what is going on and ensure we get the best value from council services within the resources available. If want to know more on anything specific, get in touch, or start here on the website:
http://www.camden.gov.uk/ccm/content/council-and-democracy/publications-and-finances/twocolumn/the-camden-challenge.en