Magazine article Public Finance

District Councils Could Suffer More from Spending Cuts, Says LGIU

Magazine article Public Finance

District Councils Could Suffer More from Spending Cuts, Says LGIU

Article excerpt

Local government experts fear district councils will suffer more from the spending cuts than their metropolitan and county counterparts.

Andy Sawford. chief executive of the Local Government Information Unit think-tank, told Public Finance he was concerned about the disproportionate effect of spending cuts on smaller councils. He said: 'For a district, the big figures being mentioned [of up to 40% spending cuts] seem more awesome right now than for a county council... It is about where you start from, what your capacity is. For example, if a district council stopped capital building projects or vehicle replacement schemes, it would save £100,000 to £200,000 - for a county, this will be more like £10m.'

District councils' smaller budgets and more limited services meant less scope for savings, he added. They might mean the councils would be able to do little more than provide their primary functions. …

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