Budget update - Residents' Letter, Summer 2010
Copy of letter sent to residents, Summer
2010.
Dear resident,
Interim budget updget
As you will be aware, the new coalition
government has made its emergency budget announcement outlining its
plans to tackle the UK’s debt problem.
You will have all seen the media speculation
in recent weeks about this announcement and importantly what impact
public spending cuts could have on local communities like Knowsley.
Even before the budget announcement was made, we were already aware
of significant reductions in funding for a variety of projects in
this area and we, like you, have wanted to learn more about the
government’s plans for the future.
The emergency budget has now provided a
clearer picture of some of the ways in which the government
initially plans to address the financial issues we are facing.
Whilst some of the exact detail still won’t be known until a
national Spending Review in October, it is already clear that the
council will face significant financial challenges, which may be
worse than initially anticipated.
This is what we know already:
- The government is looking at ways not to
increase council tax bills next year
- VAT will increase to 20% in January 2011
- Child benefit payments will be frozen for
three years
- There will be a public sector pay
freeze for workers earning more than £21,000 per year
- Tax credits will be reduced for families with
a combined income of more than £40,000 per annum
- Maximum limits will be set for housing
benefit payments
- A new medical assessment will be
required for those claiming disability living allowance
These are just some of the measures outlined
within the budget which will be the first in a series of
announcements and decisions that will be made by the government in
the coming year.
As a local authority we already know that the
budget and future announcements will have a direct impact upon our
own financial situation and indeed our ability to continue to
deliver the same level of services and support for residents. We
are now looking closely at the long-term implications of these
recent announcements, but already we are aware that we will need to
make significant savings and efficiencies of more than £26 million
over the next three years.
We have already begun a full review of all
areas of our work, including projects and initiatives - whether
they are under way or still at the planning stages. This thorough
review aims to identify areas where savings can be made and look at
how we can be more efficient and effective. This work will continue
over the coming months as a clearer picture emerges from central
government in relation to our future funding and grant
allocations.
At this stage we do not have all of the detail
that we need to make adequate plans for the future here in
Knowsley. However, it is very clear that our support from
government is likely to reduce and that the coming weeks and months
ahead will be difficult.
It is important that the council keeps
residents informed and I wanted to use this opportunity to write to
you all to give you as much information as I possibly can at this
stage. I will also ensure that you are regularly updated through
Knowsley News and on this website.
I appreciate that uncertainty about the future
can be worrying but I would like to assure you all that we remain
committed to supporting and serving our communities.
Knowsley Council will ensure that the needs of
our residents remain at the forefront of all our minds as we move
forward.
Yours faithfully
Sheena Ramsey
Chief Executive
Knowsley Council
To download a copy of
the letter in PDF format, please click here.