Council Jobs to Go -10% Staff Saving Needed

EdInvestor

baby_boomer wrote: »

It's the money that's not in their own staff pension schemes that ensure continuous inflation busting council tax increases into the 22nd Century.

The LGPS scheme is suffering at present due to the current market turmoil.But there's no reason to believe this will be a long-term problem. There are also plans to make employees share in any extra contributions needed in future years which would reduce the pressure on council taxpayers.

http://www.hymans.co.uk/PublicSector/Exclusive/Documents/081031%20Navigator%20Results%20paper.pdf

It's worth noting that along with the universities' scheme, but unlike other public sector schemes ( teachers, NHS, civil servants) the LGPS scheme is backed by real invested assets, not Government promises. Thus the burden on the taxpayer is much lower - they have to fund the employer contribution, but the pension itself will be paid by the fund's investments, like a normal company final salary scheme.

baby_boomer

treliac wrote: »

Council taxes are collected by district councils. They don't cover funding for each and every public sector.

I didn't say, or even imply, that they did.

But they do cover quite a few people beyond council workers eg teachers, police and firemen, none of whom are in funded schemes.

So Ed's point is only of limited validity regarding Council Tax. And if the government takes extra money from these workers it just goes into the government's "tax pot" - to that doesn't help Council liabilities which have ballooned and are ballooning.

Telegraph - 26% of Council Tax goes on pensions

"...There's every possibility this figure will rise over the next five years as age-related costs continue to feed in..."

nickmason

I was flabbergasted by what I discovered when elected a councillor and given an introduction to the financial details of our (district) council.

I know this will be as dull as dishwater for some, for those I apologise!:o

• As a district council, we collect council tax; yet we take less than £100 for a band D property. The vast majority goes to the County council, and other other authorities.
• Council Tax yields only about 10% of all of our income.
• About 60% of income comes from central government to cover benefits payments; it is invariably short by about £0.5M even though we are supposed to simply administer it.
• That payment will go up by 2% next year (not even making up the shortfall above); the shortfall will grow considerably on the back of increased benefits claims in forthcoming climate. This will therefore be met out of local council money.
• The remaining 30% comes from business rates (set nationally, and returned by sharing the pot out per capita - so assuming a downturn we will see a reduced return without any chance to influence it), from interest on (non-Iceland) capital/reserves, and from fees and charges. There is a trivial "revenue support grant", again less than the shortfall in the benefits transaction.
• Capital/reserves can't be spent on revenue.
• The fact that we can only really influence the council tax (10%), means that there is a huge gearing working against us - a 3% increase in costs across the board would require a 30% increase in council tax.
• The government ("protecting against profligate councils") has put a cap of 5% on council tax rises. So we have to cut services or be more efficient; in fact we are doing both.(This cap applies to all councils, that we are one of the lowest council taxes in the country makes no difference.)
• We are effectively now simply a statutory body, with such limited services that have any discretion, that the whole council is de-politicised. So much for the government's commitment to localism.

I am constantly amazed by the efforts of those in the council to find savings - and the candour with which some have talked themselves out of jobs. It's been a brutal process, but one which those involved can hold their head up high for.

Of course, there is some truth in the idea that we have simply proven what can be done - that there was fat that could be removed. Other councils are coming to us to discover what we've done. The trouble is that we have excised (or planned to) almost all of it, and still the numbers won't add up.

Without a change in policy re capping, or other rescue, we are, frankly, doomed! And unlike a profligate individual, local councils can't go bankrupt and start again. We think...

So spare a thought for the local council workers; they aren't any more safe than any other worker.

nickmason

seven-day-weekend wrote: »

I worked for a Local Authority in various posts for nearly 20 years.

THROUGHOUT that time they were 'shedding' staff in one way or another - either by not replacing someone who leaves, making a post part-time or temporary when a full-time worker leaves, dividing one job up amongst several existing staff when someone leaves - there have always been staff-cutting exercises.

Headline figures always need extensive commentary, but we are something like 15% down on headcount over the last few years.

nickmason

baby_boomer wrote: »

It's not the money in IceSave that's killing them.

It's the money that's not in their own staff pension schemes that ensure continuous inflation busting council tax increases into the 22nd Century.

Staff pension schemes might indeed be a problem, but (at least in my area) as per my email above it's central government's continuous shenanigans, smoke and mirrors, and short-funding that causes vast gearing and so "inflation busting council tax increases".

nickmason

Plasticman wrote: »

I would rather keep these people in work at the councils than pay them to sit at home on the dole. If we are over the recession in 2010/11 then the public sector can start to shed their unwanted staff with the hope that they will be able to get alternative jobs (which I won't have to pay for.........).

It would be nice to have the choice!
(And note that yes, district councils will pick up the cost of "unexpected" benefits claims, as the 2009/10 benefits payments have already been determined).

macaque_2

Davesnave wrote: »

What a wonderfully crass and cheap comment!

For many people in the private sector, the salaries, pensions and work ethics of public sector workers has become a matter of great concern.

The quality of services provided by the public sector has declined alarmingly in recent years but their costs have rocketed. Many council budgets are crippled by extravagant pensions paid to ex council employees. Public service workers are now the highest paid group in the country after city workers. Light weight managers in local councils are now helping themselves to huge 6 figure salaries. Haringey council was forced to admit earlier this month that it had spent £19,000 on media training for high-profile employees involved in the Baby P case

Before you denounce others with your pompous put downs, bear in mind that many of us heartily sick of the lazy, over paid busy bodies who have infested local and central government in recent years.

baby_boomer

nickmason wrote: »

Staff pension schemes might indeed be a problem, but (at least in my area) as per my email above it's central government's continuous shenanigans, smoke and mirrors, and short-funding that causes vast gearing and so "inflation busting council tax increases".

Or put another way, the government increases funding by inflation, knowing full well that pension liabilities will rise by inflation + x% and that councils will be squeezed.

Since council taxes only cover 20% of total expenditure this means that council taxes have to rise by x5 the % of the excess amount.

I agree that central government always dumps its rubbish on local councillors to pick up a) because they can and b) because voters don't understand either pension liabilities or local authority funding.

It's no incentive to work in local government because central government always destroys real accountability to local voters for their Council Tax.

nickmason wrote: »

• So much for the government's commitment to localism.

The system isn't designed to accommodate localism, and no central government is really interested in developing it as a principle.

DirectDebacle

Metropolitan Councils, County Councils, District Councils, Town Councils, Parish Councils. I think we are a bit light in the council sector and don't see where there could possibly be any overstaffing. :rolleyes:

beingjdc

macaque wrote: »

The quality of services provided by the public sector has declined alarmingly in recent years but their costs have rocketed.

Largely because the largest slices of the Council spending cake are schools (for which the Government has mandated big increases) and old people (who are growing rapidly in number as society ages).

Many council budgets are crippled by extravagant pensions paid to ex council employees.

The average local government pensioner currently receives a pension of approximately £80 a week.

Public service workers are now the highest paid group in the country after city workers.

Because from Thatcher onwards the public sector has been forced to outsource its basic jobs to the private sector. So the top managers are still public sector employees, but the bin men, security guards, and cleaners work in the private sector, even though they're cleaning schools and security guarding hospitals. Obviously that will push the average up, but it's meaningless.

Light weight managers in local councils are now helping themselves to huge 6 figure salaries. Haringey council was forced to admit earlier this month that it had spent £19,000 on media training for high-profile employees involved in the Baby P case

Frankly if I was going to be held to account in the national tabloids for a mother and her boyfriend's decision to murder their baby, I'd want quite a lot of media training. I also note that Haringey have significantly increased what they're prepared to pay their next Director of Children's Services. I'm not surprised - they want the best, and nobody's going to take it on because it's a low-stress job in a nice part of the world.

Before you denounce others with your pompous put downs, bear in mind that many of us heartily sick of the lazy, over paid busy bodies who have infested local and central government in recent years.

Bless.