Derby City Council

Derby Labour Party’s £161m budget cuts lie!?

Derby Labour Party is handing out leaflets which state “Since the Tories came to power £116m has been slashed from services in Derby. They have now demanded a further cut of £45m”. This is also on their website.

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Examining the facts taken from Council published documents ( shown below)

When the Tories came to power in 2010, the Council received £237m in funding ( £80m of which was raised from Council Tax)

In the year just ended 2015/16 the Council received £228m in funding  ( £75m of which was raised from Council Tax) – a reduction of £9m in 5 years!

In 3 years time, the period over which the £45m refers to, in 2018/19 the Council plans to receive £215m in funding (£88m from Council Tax)

A total reduction since 2010 of £22m! ( not £161m)

Does this make the “£161m cuts” statement – a lie? A good question to ask of your Labour Party Candidate when they knock on the door. This is a bold statement – they should have a robust and well-crafted answer.

If anyone wishes to provide a factually based informed response to this question which enlightens the position I will post, prominently, and immediately.

 

Extracts from the published Council documents ( taken from DCC website)

2010 Budget pic
2015 Budget pic
2018 Budget pic

 

 

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4 replies »

  1. The figures quoted in the article fail to take into account inflation. In the first year this was 3.3%. To stand still an extra £7.8m would be required the next year and for each of the subsequent 5 years – a total of £39m. The next year inflation was 4.5% = £11m = £44m over 4 years and so on. Taking this approach for each year the total required to date just to cover inflation is nearly £117m.

    Add to this the cumulative actual cuts and the figures from the labour party start to look like an under estimate.

    • I think you are accumulating numbers year on year which is not correct, and the inflation numbers also seem on the high side. The figures I have quoted are what they are, as published.. the question to the Labour Party is to explain the £161m in simple ways we can all understand, not for us to speculate on the calculation. There are many variables in the equation some will increase the cost, some reduce it….but those making political capital from it should be able to explain it….not just publish it and expect it to be accepted without challenge.

  2. How simple do you want it? If your wages stay the same but all prices go up, you have had a cut in your wages in eeal terms. The longer this goes on the bigger the real term cut becomes..
    This is the way that the cuts are imposed on local government by local government.
    They need to spend much more but are provided with less each year. Simple isn’t it?
    It’s not just Derby City Council that is facing this. It is a central government Tory attack that is intended to both cut public spending and discredit the public provision of servicess.
    The more difficult question for some people is…. why? But this becomes straight forward when you realise that successive governments have seen it as their job to serve the very wealthy 10% of the population and the big monopoly corporations. Thus cuts in public spending are linked directly to the policies of tax cuts for the wealthy and for cotporations, and the privatisation of services to allow these same people and companies to make escalating profits from them.
    They rely on political pundits, journalists and bloggers to cover up this simple ruse.
    We have a government of millionaire muggers who seek to portray their victims as the source of the problem!

    • I understand that point, although I’m not sure that accounts for £116m which is a 50% premium, to the annual budget, when general inflation is at record low levels during the period in question.

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