Difficult Choices Ahead - Milton Keynes Council predicts 6 million pound shortfall

2.20.37pm GMT Mon 8th Nov 2004

Milton Keynes Council has begun its budget consultation in earnest - with illustrations of potential cuts and efficiencies running to millions of pounds being presented to the public.

Council officers have been busy working up illustrations of areas where savings could be made to keep the Council Tax increase down to 3%. This is the level that the Labour Government has fixed as the 'cap' to local spending.

The process began at the Social Care and Housing Policy Development Committee, which deals with the £38 million budget for the Neighbourhood Services Directorate.

Officers were set the task in July to get down to tough spending targets, and they have come up with initial illustrations to see how this could be done.

Whilst efficiency savings of nearly £0.75 million have been identified in Neighbourhood Services, another option is to increase income for the service, including raising laundry charges by 18.5%, meal charges by 3% and home care charges by 10%.

The process will continue by looking at the remaining spending blocks in turn, with the Environment Directorate coming next. The illustrations here include making savings by switching off lighting on the grid roads or removing a 'graffiti buster' team.

These illustrations are part of the overall budget process which will then be looked at by Cabinet, and then ultimately the Full Council.

Peter Timmins, the Council's Chief Finance Officer, said: "Officers have been asked to put forward proposed efficiency savings and we are being as realistic as we can. However, these proposals are only at a very early stage and will no doubt be debated in detail. No decisions have been made yet and there will be a lengthy process before this happens."

Isobel Wilson, Leader of the Council, said: "This is a worrying time for us. The way that the Government funds Milton Keynes simply never catches up with the population growth and the needs of residents. As ever, we will be doing what we can to secure extra funding to help meet the additional costs of our increasing population. Just to illustrate the point - in the case of Neighbourhood Services we need an additional £850,000 to provide care for more older people, and more people with learning and physical disabilities."