Friday 11 June 2010

Conservative pledge to protect frontline services goes up in smoke

The true nature of the £6.25bn cuts announced by the government last month became clearer today as ministers revealed plans to strip millions from the budgets of local authorities, transport schemes and projects aimed at reducing teenage pregnancy and tackling drug use.  The Conservatives's original promise of making savings by cutting costly IT projects and consultants, while protecting frontline services, appears not to have materialised and the cuts represent a massive slice from across the government's budgets.


The Equality and Human Rights Commission, charged with tackling discrimination and safeguarding human rights, has been ordered to cut 15% from its budget, forcing it to review its staffing, marketing and programme of grants to combat discrimination on the frontline.  Neil Kinghan, its director general, said it was conducting a full review to ensure "the most vulnerable in society do not suffer unfairly as the country grapples with the current economic climate."  

The communities secretary, Eric Pickles, announced where the £1.16bn in cuts to local government budgets would fall this year. Every local authority faces cuts of 1%-2% to its 2010-11 budget.  Ministers have attempted to soften that blow by removing ring-fencing to their education budgets to give local decision-makers more control over their spending.  Local transport schemes have been frozen pending review and grants to councils for schemes aimed at young people have been cut by 24%.  Dame Margaret Eaton, chairman of the Local Government Association, said: "We have to recognise that these cuts will be painful to implement this year and will have a significant effect on services and the people who rely on them."


On the Sunday before the election David Cameron told the BBC's Andrew Marr that if ministers came to him proposing frontline reductions they would be "sent straight back to their department to go away and think again".  Today's announcements raise new questions about the coalition's definition of what constitutes a frontline service after accusations that the cuts would harm crucial services.

Other agencies affected include the Food Standards Agency, whose future is under threat with confirmed plans to give its responsibilities for nutritional advice to the Department of Health and suggestions that the remainder of its responsibilities be returned to the Department for Environment, Food and Rural Affairs.  The Electoral Commission is discussing with the speaker's committee in the House of Commons, which it reports to, on how best to achieve cuts both this year and in future years.  The Homes and Communities Agency is to lose £780m it had been promised after coalition ministers claimed the cash had not been properly assigned by the previous Labour government.

When the £6.25bn cuts were announced there were suggestions that all government agencies were being told to make savings of 10%.  The spending review framework, published this week, said: "On the administrative spending of central Whitehall and its arms length bodies, departments will be asked to reduce their spending by at least one third."  John Denham, shadow communities secretary, said: "The Tory-Liberal government's own figures published today now show that it is cities, struggling seasides, former industrial towns and ex-coalfield areas that will be bearing the brunt of the cuts.  "It shows the Tory-Liberal Government have broken their promise not to balance the books on the back of the poorest."

POLICE
Forces face a £135m reduction in funding this year – less than 1% – as a result of the budget deficit reduction plan.  The bulk involves a £115m reduction in "rule two grants" such as for rural policing, but also includes a £10m cut in counter-terrorism money.  A further £100m saving this year in computer projects and central purchasing has already been identified.  The impact on the police budget of £9.61bn has been minimised by cutting deeper into the central Home Office budget. 

EDUCATION
£311m is being cut from local authority grants for education initiatives.  This includes £6.6m from a teenage pregnancies reduction fund and £1.7m from the budget for youth drug addiction.  £1.4m will be shaved from funds to offer college places to all 16- and 17-year-olds who are not in employment or education. The Department for Education said local authorities would be able to switch money into these initiatives from other budgets. 

TRANSPORT
The transport secretary, Philip Hammond, froze plans for dozens of new local transport projects, including a £250m trolleybus scheme in Leeds.  Large projects such as the Thameslink and Crossrail schemes in London have already been put under review.  Local authorities were yesterday told that any new scheme awaiting Department for Transport approval is not guaranteed funding. 

The Guardian (amended)