‘The community stuff that makes us feel good doesn’t happen anymore’: Can councils survive spending cuts?

Published

1 year ago

April 1, 2023

admin

Nottingham Castle was built nearly 1,000 years ago, designed as an impregnable Norman fort.

Today it is a tourist attraction – but just as inaccessible.

The castle, owned by the council, has been closed since November, when its trust went into liquidation.

It is a symbol of a city and of a council that has struggled financially in the two years since it lost £38m on a failed company – Robin Hood Energy.

But it tells a bigger tale, of a local government system which is creaking – stripped of cash by Westminster and shaped by incentives and pressures that can lead councils to financial disaster.

Explainer – Energy bills, council tax, broadband and everything due to rise in price from today

Just down the road from Nottingham Castle is a centre called Base 51 that works with vulnerable young people.

Its funding from Nottingham City Council has been completely cut so it’s launched a crowdfunding campaign. But as things stand, it will have to vacate its premises in six months.

Three teenagers were there when Sky News visited.

“Before I started coming here I was going out and getting into trouble,” Deyarni Beedy-Lamonte said.

“But since I’ve started coming here I’ve been offered counselling. And obviously that’s helped get me onto a better path.”

Quinn Vahey says there’s little else on offer for teenagers in Nottingham. “If I weren’t here, I’d be getting in trouble every day basically. I’d probably get arrested by now.”

Nottingham City Council told Sky News: “Like all councils, the City Council has been receiving less and less in government grants over the past 13 years to pay for local services, which has forced us to cut services that we would prefer not to.”

Not all councils have launched an energy company, though, and seen it go quite spectacularly bust.

But the council is right about government funding – grants from central government have fallen nearly 90% since 2014.

During roughly the same period, councils have cut back on discretionary spending.

Take roads, for instance – fixing things like potholes. Around £1bn was spent across all councils in 2013.

Today, that’s fallen to £690m, even after adjusting for inflation. Or street lighting, which has lost £100m in funding.

One of the most famous councillors in the country (not a crowded field) is Jackie Weaver.

She went viral after a chaotic Zoom meeting of a parish council, in which she was told: “You have no authority here Jackie Weaver. No authority at all.”

But Weaver is chief officer at Cheshire Association of Local Councils and knows the subject inside out.

“As money has got tighter over, I would say, the last 10 years, probably, we’ve seen the district and county councils in Cheshire disappear, the county council disappeared altogether, contract so much that now they only perform their statutory functions,” she told Sky News.

“Now, that means all the kind of community stuff that is visible, that makes us feel good, doesn’t happen anymore. They don’t have any money to do it. They only focus on statutory obligations.”

Statutory obligations are services that councils are legally obliged to provide and the most important, and the most expensive, is social care.

Councils are spending an ever greater share of their budgets on social care, as the population ages and care demands become more complex.

Total council spending has gone from £26bn 10 years ago to £30bn today, again adjusted for inflation.

If you look at social care as a proportion of councils’ total spending, you can see just how much it’s eating up – from 57% in 2012 to 62% last year.

Three councils – Nottinghamshire, Staffordshire and Halton in Cheshire – spent more than three quarters of their total 2021/22 budgets on providing social care.

So: add a massive cut in central government funding to a huge increase in demand for services councils are legally obliged to provide and spending cuts in other areas seem inevitable.

This isn’t just a tale of austerity, though, but a deliberate redesign, dating back to changes to the system made back in 2010.

“Councils were told to be innovative, entrepreneurial – to act like any other company, and this involved investments, property, other sorts of investments, maybe outside their own local authority area,” Jonathan Werran, CEO of thinktank Localis, told Sky News.

“But the reason they were doing this was to earn revenue to fund the local public services upon which people depend and rely upon – trying to plug the gap.”

That “entrepreneurial” model may have suited some councils – but it has led others, like Nottingham, into choppy financial waters.

Nottingham issued a Section 114 notice – a formal declaration of financial problems – in 2021.

But it’s far from the only one.

Thurrock, Slough and Kent have all issued Section 114 notices within the last year.

Levelling Up: Areas with high levels of deprivation suffered the most from austerity

Woking, which has racked up £2bn in debt investing in property, has said it is in danger of doing the same.

“There’s definitely more and more councils that are in challenging financial positions – a number of councils over the last five years or so particularly have borrowed quite heavily to fund investment in property,” Tim Oliver, chairman of the County Councils Network, told Sky News.

The person who changed the system was Lord Pickles, secretary of state for communities and local government in David Cameron’s coalition government, in 2010.

The idea behind the reforms was “essentially, to give [councils] more power and give them more say of how they spent things”, Lord Pickles told Sky News.

“And it’s called localism. And it really was designed to give power right down to the lowest level in local government.”

Sky News asked him about the councils that have issued Section 114 notices and whether it was a good idea to ask councils to be more entrepreneurial with public money.

“I want to say so, I think a lot of it boils down to a lack of due diligence,” he said.

“But the ones that we talk about, I think that there’s been a kind of a real problem when they’re sort of moved into this without properly thinking it through.”

Every council Sky News spoke to said they need more money from central government.

A spokesperson for the Department for Levelling Up, Housing and Communities told Sky News: “We are making an additional £5.1bn available for councils in England in the next financial year.

“We are also providing multi-year certainty to local government, outlining spending over the next two years to allow councils to plan ahead with confidence.”

Sky News understands that around £2bn of that new money is intended for social care.

But that represents just a 6.67% increase on the total amount spent by councils – at a time when inflation is significantly higher.

Councils will still struggle to afford social care, which means they will struggle to provide other services.

Click to subscribe to the Sky News Daily wherever you get your podcasts

And that may ultimately end up costing even more. Take Base 51 for example. As non-statutory spending, it can be cut.

But if those teenagers get into trouble and enter the social care or criminal justice system, that ends up costing more down the line.

“That’s the challenge we’re trying to work through now,” Mr Oliver told Sky News.

“You need to sort of double run it.

“So you need to have sufficient money to deliver the services to the people that are already in the system. But then equally you need to put funding and investment into prevention and early intervention.

“It is a false economy, not to invest in that early prevention. But that is the challenge around finding the funding to do both.”

Local government can be an unglamorous subject but it has a huge impact on people’s lives: the fabric of our society is made up of many threads.

Many of them are small: street lights, bin collections, pot holes, community centres.

Some are huge, like social care.

And pick at those threads, year after year, and it adds up to the sense that the social fabric, the deal between citizens and state, is fraying.

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

Why data journalism matters to Sky News

UK

Who could replace Humza Yousaf as Scotland’s first minister?

Published

8 hours ago

April 29, 2024

admin

Who could replace Humza Yousaf as Scotland's first minister?

Humza Yousaf has announced he is standing down as Scotland’s first minister and SNP leader.

Here are some of the potential contenders who could step up to lead the country.

Follow live: Humza Yousaf resigns as Scotland’s first minister

KATE FORBES

Kate Forbes narrowly lost out to Mr Yousaf in last year’s SNP leadership contest.

The former finance secretary faced backlash during her campaign after admitting she would have voted against gay marriage in Scotland when it was made legal a decade ago.

The Free Church of Scotland member also told Sky News that having children out of marriage is “wrong” and something she would “seek to avoid”.

However, the MSP for Skye, Lochaber and Badenoch stressed that “in a free society you can do what you want”.

Ms Forbes had argued that “continuity won’t cut it”.

After losing to Mr Yousaf by 48% to 52%, she said: “If we are to continue to win elections, we need to continue to listen and maintain trust.”

Ms Forbes turned down the role of rural affairs minister, which at the time was seen as a demotion.

Although her views on social issues remain unpopular with some of her MSP colleagues, she was one of the few SNP ministers who did not delete her WhatsApp messages during the COVID pandemic.

Ms Forbes would face resistance from the Scottish Greens, who have previously ruled out working with her.

STEPHEN FLYNN

Stephen Flynn replaced Ian Blackford as the SNP’s Westminster leader in December 2022.

The Aberdeen South MP was touted as a potential future party leader by Joanna Cherry MP.

Ms Cherry praised his leadership, noting he was “tolerant” of opposing views and committed to addressing division within the SNP.

As he is not an MSP, that could block his chances of becoming first minister at Holyrood.

NEIL GRAY

Former journalist Neil Gray is Holyrood’s health secretary. He was promoted to the role in February after Michael Matheson resigned following a scandal involving an £11,000 iPad data roaming bill.

Mr Gray, the MSP for Airdrie and Shotts, previously served as an MP between 2015 and 2021 before making the switch from Westminster to Holyrood.

Mr Gray, who served as Mr Yousaf’s campaign manager in the SNP leadership contest, was previously the cabinet secretary for wellbeing economy, fair work and energy, and before that the minister for culture, Europe and International Development.

JENNY GILRUTH

Jenny Gilruth, Holyrood’s education secretary, is a former modern studies teacher and is married to ex-Scottish Labour leader Kezia Dugdale.

The SNP MSP for Mid Fife and Glenrothes was a junior minister in Nicola Sturgeon’s government.

She was promoted from transport secretary to cabinet secretary for education and skills after Mr Yousaf took charge in March 2023.

Ms Gilruth is seen to be ambitious but was recently criticised by Scotland’s largest teaching union for failing to read its damning report on violence in Aberdeen schools.

SHONA ROBISON

Shona Robison could fancy her chances as Scotland’s leader following her stint as deputy first minister under Mr Yousaf.

Ms Robison, the finance secretary, has been the MSP for Dundee City East since 2003 and is a close friend of former first minister Ms Sturgeon.

She has previously held the post of health secretary, and as cabinet secretary for social justice, housing and local government was behind Holyrood’s efforts to pass the controversial Gender Recognition Reform (Scotland) Bill.

Following the breakdown of the Bute House Agreement, Ms Robison may face a challenge to hold onto her position if the SNP wish to replace those at the top of the chain in an effort to start afresh.

JOHN SWINNEY

John Swinney stood down as deputy first minister following Ms Sturgeon’s shock resignation in 2023.

The former SNP leader, who resigned from that post in 2004 following poor European parliament election results, could be tempted to once again step into the spotlight following his year on the backbenches.

He ruled himself out of the 2023 leadership race, citing that he had to put his young family first.

The MSP for Perthshire North, who was finance secretary under Alex Salmond’s government, has the experience to hold the fort following Mr Yousaf’s departure.

MAIRI MCALLAN

Mairi McAllan is a rising star within the SNP.

The MSP for Clydesdale was a special adviser to Ms Sturgeon and is now the wellbeing economy, net zero and energy secretary.

She faced a storm of criticism earlier this month after announcing the scrapping of the Scottish government’s key climate change target.

At the age of 31, Ms McAllan would become the youngest first minister.

As she is expecting her first child, with maternity leave expected to kick in during the summer until March 2025, it seems unlikely she will run for the top job.

UK

Two men charged with murder after man’s torso found in Salford nature reserve

Published

9 hours ago

April 29, 2024

admin

Two men charged with murder after man's torso found in Salford nature reserve

Two men have been charged with murder after a man’s torso was found at a nature reserve in Salford, police have said.

Greater Manchester Police said more human remains were discovered this morning in an alleyway close to railway lines in the market town of Eccles.

This follows earlier discoveries of human remains at two other locations – Blackleach Reservoir and Colliery Wood – as part of the investigation over the weekend in the Greater Manchester area.

Police believe the torso – consisting of the bottom of the back, buttocks and thigh – found at Kersal Dale Wetlands on 4 April belongs to a man in his 60s.

Officers have informed his family about his death, but have not yet identified him publicly.

The remains found at the other three locations are still to be tested, but police say they are confident they belong to the same victim.

Michal Jaroslaw Polchowski, 68, and Marcin Majerkiewicz, 42, both of Worsley Road, Eccles, have been charged with murder.

They are due to appear at Tameside Magistrates’ Court this afternoon, Greater Manchester Police said.

Assistant Chief Constable Sarah Jackson said: “We have had large numbers of officers, staff and specialists working diligently on this investigation over the last three weeks.

“It has been very much a large, collective effort, with the victim and family at the heart of it from the outset.

“We have specially trained officers deployed to support the family as they come to terms with this tragic news.

“They are aware of this morning’s further discovery and will continue to be kept up to date with how we are progressing.”

She said despite the charges brought today – “our work is far from over”.

“The scenes we already have established in Bury and Salford will remain in place for much of this week whilst our searches and inquiries continue,” she said.

“Local officers will continue to patrol the impacted areas to provide reassurance.

“We will continue following every line of inquiry to recover and reunite the victim with his family, bringing a dignified end to this terrible scenario.”

She added: “I’d like to thank the communities of Salford and beyond for their co-operation throughout this investigation.

“I know this incident has come as a shock, and the support we’ve had from those in the area is very much appreciated.”

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.

UK

Humza Yousaf resigns as Scotland’s first minister

Published

9 hours ago

April 29, 2024

admin

Humza Yousaf resigns as Scotland's first minister

Humza Yousaf has resigned as Scotland’s first minister after cutting ties with his government’s power-sharing partners.

The leader of the SNP, who only took on the role in March last year, has been at the centre of a chaotic few days in Holyrood after he made the surprise announcement to end his power-sharing deal with the Scottish Green Party on Thursday.

Mr Yousaf cut ties following a bitter row over the SNP’s climbdown on climate targets as he said the agreement between the parties had “served its purpose”.

But as a result, his former Green allies teamed up with the Conservatives, Labour and Liberal Democrats to get behind two no-confidence motio ns, one in himself as leader of Scotland and another regarding the entire Scottish government.

Ahead of any of those votes taking place, Mr Yousaf stepped down as Scotland’s first minister just after midday on Monday as he said he was “not willing to treat my values and principles or do deals with whomever simply for retaining power”.

He said he will remain in post until a replacement first minister is chosen.

Over the weekend, Mr Yousaf insisted he would not resign but by Monday morning his tune had changed and Sky News was told he was considering resigning.

He was due to meet the Alba Party’s sole MSP, Ash Regan, who was set to make demands in exchange for her support during a confidence vote. Her vote could have been the decider but he chose to step down before it came to that.

Announcing he was quitting, Mr Yousaf said he “clearly underestimated the level of heart and upset” he caused the Greens when he cut ties with them.

“To my colleagues in opposition, regardless of political party, genuinely, I bear no ill will and certainly no grudge against anyone,” he said as his voice broke while thanking his wife, children and family for “putting up with me over the years”.

Mr Yousaf said it had been “an honour” to serve as first minister of Scotland and it was a role he “could never have dreamt” of as a young boy growing up there.

The politician, whose parents are Pakistani and Kenyan, also said he is evidence multiculturalism has flourished in the UK.

“People who looked like me were not in positions of political influence, let alone leading governments, when I was younger,” he said.

“We now live in a UK that has a British Hindu prime minister, a Muslim mayor of London, a black Welsh first minister, and for a little while longer a Scottish Asian first minister of this country.

“So for those who decry that multiculturalism has failed across the UK, I would suggest that the evidence is quite to the contrary and that is something we should all celebrate.”

Mr Yousaf said he was proud to have overseen “the most progressive” tax system in the UK and played a part in lifting an expected 100,000 children out of poverty this year.

He added that he will continue to campaign for independence, which he said “feels frustratingly close” and he is “absolutely certain” his successor will achieve it.

The race to replace Mr Yousaf has now commenced, with several names in the fray, although none have officially declared they have thrown their hats in the ring.

Close ally of Mr Yousaf, John Swinney, former deputy leader under Nicola Sturgeon, is being touted as the favourite.

Stephen Flynn, the SNP’s Westminster leader, has also been mentioned as has Kate Forbes who lost out to Mr Yousaf during last year’s leadership contest.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.