Pickles says settlement for local government is "fair though challenging"

The Comprehensive Spending Review provides a “fair though challenging” settlement, the Communities Secretary has said in a letter to all leaders of local authorities in England.

Hailing the review for providing significant new powers for local government, Eric Pickles said: “Councils have long argued that with more freedom and flexibility, they would be much better equipped to become more efficient and effective in delivering local public services.

“This settlement delivers that freedom and flexibility, as part of the new government’s decentralisation agenda.”

In the letter, the Communities Secretary acknowledged that councils would face an average loss of grant of 7.25%, in real terms, in each of the next four years. But he insisted that the unprecedented shift in power means that local authorities would be “well placed to tackle the inevitable challenges ahead”.

Pickles claimed that since councils also raise revenues from other sources, the actual reduction in overall council spending will be much lower. “There is a clear expectation that councils will use this new autonomy to protect key frontline services,” he wrote.

The minister said councils must:

• Fundamentally re-examine every aspect of the way that they work
• Eliminate all traces of waste by becoming more transparent and improving procurement practice
• Maximise efficiency and productivity, drawing on the lessons of the LGA-led productivity programme
• Share departments, officers and back office services between different local authorities, and
• Bring excessive senior pay under control.

He concluded: “The emphasis must be on creativity and innovation. Councils must really put every aspect of service delivery under the microscope, focusing on early intervention and drawing on the significant expertise, reach and resources in the voluntary and community sector.

“I have every confidence that, with these new powers, councils who tackle the issues head on will be able to meet the expectations of local residents by protecting frontline services, hardworking families and the most vulnerable.”