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Local authority cuts – a huge task ahead

20 October 2010

Local Authorities are required to reduce their costs by 7.1% every year for the next 4 years. This is better than the 30% cuts that most Local Authorities have been planning for, and allows Local Authorities time to achieve the costs savings required, which was not necessarily anticipated. However, if Local Authorities end today feeling relieved about the level of cuts, the Government will have pulled off a fine piece of expectation management.

This level of cuts still represents a significant portion of current Local Authority budgets and achieving the level of cuts required will be a huge task. Ultimately, within four years, Local Authorities are going to have to either simply cease to provide more than one quarter of their services, or undertake wholesale reform across their services so that more efficient services can continue to be provided.

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