Posted tagged ‘Ingrid Koehler’

That was the local government week that was

November 18, 2011

Same picture; different stories

It’s a bumper crop of local government blogging and other news this week so without further ado:

One of our favourite blogs is flip chart fairy tales and this week’s discussion of local government cuts, and the ‘great local government fire sale’ that is accompanying them, was particularly accurately put. As the author (Rick) points out:

Councils desperate to get costly services off their books may well grasp at such offers without thinking too hard about the longer-term implications. In some areas, smaller firms and social enterprises might not even get a look in.

This is the sort of thing that happens in all distressed organisations. Companies that are facing bankruptcy tend to slash and burn in a breathless struggle to dump their costlier activities. Sudden and drastic budget cuts will have the same effect on local authorities.

The ever excellent Simon Parker has written a helpful post about the Public Account Committee’s report on local government finance. As he says:

Reviewing the formulas is necessary but not sufficient. The problem with changing the rules is that it redistributes money: some councils get more and others get less. That requires a government with the political guts to shift funding around the system. And that is where things get tricky.

He’s not wrong and as he mentions later on it’s going to take real courage from central Government to do something about it.

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