McAvoy slams bankers as South Lanarkshire Council pass next year's budget

Feb 17 2011 by Douglas Dickie, Hamilton Advertiser

EDDIE McAvoy pointed the finger at ‘greedy’ bankers as South Lanarkshire Council finally approved their budget for the next financial year.

The council leader was scathing in his criticism of the financial services fat cats, blaming them for the crisis which has dramatically reduced the amount of money available to local authorities.

He announced agreement on a £25million cuts package and the freezing of council tax for the fourth year running.

The budget and council tax freeze were passed by the executive committee last week, with many services slashed.

Around 340 of the council’s 16,000-strong workforce will lose their jobs, although the council say there will be no compulsory redundancies.

The council also insist they have saved frontline services and reduced the potential cuts package by around £2.3million, while spending in some resources, such as education, is even set to increase.

Councillor McAvoy said: “Make no mistake, the Government's spending review and the need to fill the black hole in the economy caused by the global banking scandal, caused by what some might say was greed, means our budget has been cut by a massive amount.

“We will strive with everything possible in our power to protect services and minimise the effect of cuts, but we must be realistic. South Lanarkshire has for many years offered many services free, frozen charges and pioneered initiatives we were not duty bound to offer in what now seems like the good times.

“In the current climate some of our non-statutory initiatives will have to be curtailed, and in some cases charges introduced. None of these decisions have been taken lightly, but we have no choice if we are to meet our savings targets.

“We are in an age of austerity that has not been experienced for a generation.”

Councillor McAvoy told members at a full council meeting that, despite the cuts, investment in housing, roads and services for older people had been saved. Crucially, the flagship schools’ modernisation programme will also not be affected.

He added: “Despite the cutbacks we will continue to deliver on a daily basis services aimed at championing the hopes and aspirations of our communities.”

The council tax freeze has been matched by a freeze in water and sewage charges, meaning South Lanarkshire’s 143,800 tax payers will pay the same as last year.

Those living in the lowest valued properties in Band A will pay a total of a combined council tax/water charge of £996 a year, with those in Band B paying £1162. Together, those two bands make up over 45 per cent of properties in the region.

Last Thursday’s meetings brought an end to a saga which stretched back months, with political groups trying to thrash out agreements on what should be cut.

The council’s chief executive, Archie Strang, admitted to the executive committee: “It’s been something of a long and winding road with some turns along the way.”

SNP Group leader Anne Maggs said there was still aspects of the budget with which the opposition did not agree, adding: “Following lengthy negotiations involving the removal of a number of unpalatable cuts from the budget, the SNP group have approved the plan for next year’s budget.

“However, we would like to have seen a greater emphasis on efficiency savings to reduce costs of some services rather than just cutting the budgets.

“We still believe there is room for more efficiency savings within the council.

“Following talks, the free use of sports facilities for over 60s, which was introduced by the SNP three years ago, has been retained and this will allow our over 60s to continue to improve their health and wellbeing without cost.

“We are also pleased our suggestion has been taken to instigate a ‘task group’ to look at all aspects of parking including charges and the parking zones around our town centre.

“We’d also once again like to thank the SNP Government for fully funding the opportunity to freeze council tax giving further help to every council tax payer during these times of financial hardship.”