Councils’ budgets must be “efficient” with taxpayers’ money, as this is “not the time for local government to start experimenting”, Lee Rowley has said.
Speaking at Room151’s Local Authority Treasurers’ Investment Forum and Finance Directors’ Summit, the minister for local government started off his address by acknowledging that this is not the “easiest time” for the sector, and recognised the “fantastic work” it does.
Rowley stated that on the back of Covid-19, he understands that councils’ budget setting processes will be “challenging”, but it would be “challenging whatever rosette is in government”.
Referencing Room151’s treasury survey (released today 19 September), Rowley stated that the government is aware about the “enthusiasm and importance” of multi-year settlements, and it will “try to do what it can to extend that and set out what is coming in the future”.
However, he stressed that in this budget setting process, “local government needs to be squeaky clean about the use of taxpayers’ resources, with an endless focus on efficiencies and the acute need to refashion services.
“Wherever we can make efficiencies, we have to see it as the day job, there will always be efficiencies although sometimes difficult to find, ” Rowley said.
Rowley added that the debate in local government “must not become stuck on what is enough versus not enough money”.
“Politics is about marrying together infinite endeavours and demands with finite resources,” he said.
‘Not the time to start experimenting’
The minister for local government then turned his attention to recent policy decisions made by South Cambridgeshire District Council, who is set to enforce a four-day working week for office workers and bin collectors.
“This is not time for local government to start experimenting with things like the four-day weeks. Can you imagine the signal that sends out to those who get up in the morning like those in South Cambridgeshire.
“It is not on I’m afraid, I have told this to South Cambridgeshire several times already, so far, they are not listening, but they will do so,” he said.
‘Won’t hesitate to intervene’
Later on in his speech, Rowley also highlighted the “small number” of councils who have recently got into financial trouble, but stressed that each of these cases are “localised and individual”, down to poor decision making and due to “reckless investments”.
Rowley addressed delegates as the government is expected to intervene at Birmingham City Council due to the magnitude of financial challenges that the authority faces.
He said: “We will not hesitate to check facts about value for money and step in to stop failure, should that unfortunately be necessary.”
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