Lanarkshire taxpayers ‘would benefit if councils pooled resources’

Nov 26 2009 by John Rowbotham, Hamilton Advertiser

TAXPAYERS in South Lanarkshire would benefit if the eight councils along the Clyde Valley pooled their resources, according to a radical report published this week.

The Clyde Valley Review claims the best way for local authorities to combat savage public spending cuts is to work closer together in delivering key services.

The report’s author, Sir John Arbuthnott, identifies health and social care, education and roads maintenance as particular services where a merging of certain resources would cut costs and improve efficiency.

Other areas include payroll and back office functions, transport and property maintenance.

The councils involved in the review are North and South Lanarkshire, East and West Dunbartonshire, East Renfrewshire and Renfrewshire, Glasgow and Inverclyde.

Combined, they employ 76,000 people and have an annual budget of around £6.5bn.

While advocating the sharing of relevant staff across council boundaries, the review rules out any merger of the actual councils themselves.

The councils involved are understood to welcome the recommendations but, with job losses inevitable, union leaders have expressed caution.

The councils and the Scottish Government are now considering the review’s suggestions.

Sir John recommends prompt action be taken to soften the blow to the taxpayer of impending cuts.

In his introduction to The Clyde Valley Review, Sir John, a former university principal and NHS chairman, states: “The Clyde Valley Partnership had the foresight to commission this review when the financial picture was emerging. Urgency is now required in how they address the financial squeeze.”

He adds: “They cannot afford to continue as they are and things cannot remain the same. They must do this together.

“The scale of the challenge is unprecedented. It will affect directly the amount of money available to local government for the next 10 and possibly 20 years.”

South Lanarkshire Council announced earlier this year it was facing estimated spending cuts of £111m over the next four years.

Commenting on the Clyde Valley Review, a spokesman for the council said: “We are examining the recommendations in detail and will be responding in due course.”

Meanwhile, an official review has stated that councillors’ pay should be frozen for the next two years because of budget pressures.

The move would see council leaders’ salaries remain at between £27,058 and £48,704, while most councillors’ salaries would stay at £16,234.

The recommendation to ministers came from the Scottish Local Authorities Remuneration Committee, who also urged reforms to the expenses system. These included making financial information on councillors’ websites more transparent.

Committee chairman Ian Livingstone said: “The present economic climate has thrown up many challenges in trying to be fair, whilst being very conscious of the budgetary pressures anticipated by councils over the next couple of years.”