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Plan for Pain - Richmond and the Budget

30 June 2010

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George Osborne, Chancellor for the Exchequer, announced his first budget on 22 June, and it wasn't pretty. Handed, upon election, a country trying to fight its way out of recession, it was Osborne's job to get the balance right between cutting back on out-goings without jeopardising the fragile economy.

 One such outgoing is, of course, the government funding disseminated across local councils to support services and projects on the ground. And how did Richmond fare? The first cut is the deepest, says the song, and our first cut was £906,000, or 1.6%. This, claim the council, is 50% higher than the average cut to London boroughs.
And more to come? We won't know until the Comprehensive Spending Review due to be issued by government on 20 October, but the Council is already applying itself in preparation for heavy cuts.
"We are all in it together" is the message from Nicholas True, Richmond Council Leader. And he has his work cut out for him. This council has said it wants a two-year freeze on Council Tax in the Richmond borough and this is still the intention, despite the chancellor's budget.
Cllr Geoffrey Samuel advises that the average budget cut in the recent budget was 25% across government departments "and our sector will, in all likelihood, fare considerably worse."  Richmond Council is looking at all costs from the bottom up to assess where there is room for savings. One way of saving is to do things in partnership with local people and businesses, sharing the cost with the private sector. Another is to find efficiencies as a result of this renewed scrutiny and be able to provide the same service for less. Inevitably there will be some costs that will not be seen as essential under the new straitened circumstances and will be pulled completely.

 Already two free magazines published by the council have been closed down, with a saving in excess of £100,000 which will help towards filling the anticipated hole in the government funding.
It has been said that the chancellor's budget will affect everyone in the country, we just don't all know quite HOW yet. Good luck with your review, Richmond council - I'm glad its not my job. And so we watch and wait for the Comprehensive Spending Review in October but meanwhile, plan for pain.

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