South Lanarkshire Council cuts not as deep as first feared

Feb 3 2010 by Kenny Smith, Rutherglen Reformer

CUTS to South Lanarkshire Council’s budget for the next financial year will not be as severe as at first feared.

Extra cash from the Scottish Government, to help pay for Public-Private Partnership projects, has improved the authority’s financial position.

It means that the council will have to cut spending by £17.5million – rather than the figure of around £21m that was suggested in October.

Saved from the axe are gala day grants, OAPs’ Christmas lunch grants, public toilets, Christmas trees and school transport provision.

However, OAPs will still lose their £50 spring bonus, and schemes to supply free bottled water and fruit to primary schools will be pared down.

There will also be reductions in spending on tourism and grass-cutting.

A spending-cuts programme was unanimously approved on Monday at a meeting of the council’s executive committee.

Councillors and officers had been considering cash-cutting options since October when the Scottish Government announced a £174m reduction in the amount of grant available to the country’s 32 councils. South Lanarkshire’s share of the overall reduction was likely to be £10m, with the expected savings target increasing to about £21m once other costs were taken into account.

However, a change in the way the Scottish Government allocates grants to councils for PPP projects provided South Lanarkshire with an unexpected £3.5m windfall.

And, as finance director Linda Hardie told the executive committee meeting, the savings target was now £17.5m.

Councillors approved the list of savings outlined by Ms Hardie and rubber-stamped a budget of £724.8m, which includes a grant of £599.2 from the Scottish Government.

The cuts of £17.5m includes a two per cent efficiency savings package amounting to almost £11m.

Following the meeting, Council Leader Eddie McAvoy said: “It has been difficult framing the budget but the extra money in relation to PPP has obviously helped.

“There is now speculation that after the General Election later this year we will be looking at cuts of anything up to £30m here in South Lanarkshire.

“If that’s the case, then some of the projects saved this year may be under threat again when we come to prepare the budget for the financial year after next.

“We have looked long and hard at the way we deliver services, what we deliver and the best way forward with a tight budget.

“This package achieves a balance in South Lanarkshire and allows us to move forward to meet our priorities.”

South Lanarkshire councillors say their priorities are to continue the schools modernisation programme; develop services for older people; improve the roads network; improve the quality, access and availability of housing; promote sustainable development, support the local economy by providing the right conditions for growth; improving skills and employability; partnership working, community leadership and engagement; performance management and improvement; and ensuring the efficient and effective use of resources.