Apr 2008 27

Council Spending Uncovered No. 5: The Ten Percent Challenge10

  • TAXPAYERS’ ALLIANCE THROWS DOWN GAUNTLET TO COUNCILS
  • WITH SIMPLE AND MODEST SAVINGS COUNCIL TAX CAN BE CUT BY 3.5%, WHICH IS £40 OFF THE AVERAGE BAND D BILL
  • INDIVIDUAL DETAILS FOR HUNDREDS OF COUNCILS SHOWS SIMPLE SAVINGS IN PUBLICITY, MANAGEMENT AND PENSION COSTS

Ahead of the local elections on May 1st, this fifth Council Spending Uncovered paper brings together the previous papers which revealed large amounts of spending poured into publicity, middle and senior management and gold-plated pensions, and issues councils of all parties across England and Scotland with a simple challenge:

If councils cut publicity, management and pension costs by just 10 per cent, they can cut council tax by an average of 3.5 per cent, or around £40 off an average Band D bill.

This is the TaxPayers’ Alliance "Ten Per Cent Challenge".

KEY FINDINGS:

  • In 2006-07, councils in England and Scotland spent over £400 million on publicity, £1.9 billion employing managers earning over £50,000 and over £4.3 billion on employer pension contributions. The total of the three expenditures is therefore £6.6 billion.
  • Saving just 10% on those three areas alone would therefore reduce expenditure by £660 million.
    In the same year, council tax collected in England and Scotland totalled £18.7 billion (excluding Fire and Police precepts). Saving £660 million from that total would allow councils to reduce council tax by 3.5%.
  • The average Band D council tax bill in 2006-07 (including both the district and county council where relevant but excluding the GLA and Fire and Police precepts) was just over £1,100. A 3.5% reduction would equal around £40.

The full report, which can be found here, provides detailed breakdowns for the savings that can be made by each local authority in England and Wales.

Matthew Elliott, Chief Executive of the TaxPayers’ Alliance, said:

“Council tax has doubled in the last decade and is now so high that it tips many families and pensioners over the edge.  But it doesn’t have to be that way.  Local authorities of all parties could make meaningful council tax reductions if they saved a modest 10 per cent in these three non-priority areas.”

Andrew Allum, Chairman of the TaxPayers’ Alliance, said:

“These 10 per cent savings could easily be achieved if local authorities focused resources on the real priorities.  We hear repeatedly that councils are cash-strapped, but there is a lot they can do to reduce costs, cut council tax and better serve their local residents.”

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  • David

    What do you mean council tax cut by 3.5%. I bet I could cut it by 10% easily.
    or
    even abolish it altogether …..

  • Steve Robson

    I could abolish it too. Just get rid of Councils alltogether and return to the good old 19th century times of workhouses and public health disasters. Get rid of free education and make all roads toll roads. Let people’s houses burn down if there is a fire and people can protect themselves aginst crime. Maybe everyone (or those who can afford it) can carry a gun. Let people build what they like, where they like and if there neighbours aren’t happy, they can shoot them.
    Libertarian heaven. Sounds good, lets do it.
    Or we could have a society where life is no longer “nasty, brutish and short”, which requires public goods and community spending…and governance…and therefore local government…and, oh no, you have to actually pay for these things…we’d better raise a tax….

  • Graeme Pirie

    I guess “Steve Robson” thinks we get a good deal from our government?
    The only thing is we have public health disasters right now – what’s the chances of catching MRSA now compared to 10 years ago? Mmmh strange that after throwing so much money at it, maybe money’s not the answer?
    As for toll roads – great, bring them on, we’ll end up paying 20% of what we do now.
    I won’t even go into edukashun or crime.

  • Steve Robson

    We have MRSA because we contracted out cleaning to save money and depress wages as suggested by people like the TPA and tory boys.
    MRSA is precisely the sort of disaster that results from your policies.
    I’m not arguing though, give it a try and see how cholera feels.

  • Graeme Pirie

    You seem to forget that pots and pots of money have been thrown at the NHS. It’s THIS policy that’s actually caused MRSA etc, not “our” policies.
    So where’s all the extra “investment” gone?
    Do you think it’s been well spent? Is the NHS well managed? Is it value for money?
    By the way I put investment in quotes because I call it waste not investment.

  • Steve Robson

    I think its pretty clear where the investment has gone, to staff, particularly Doctors. I guess there is a debate about whether and to what extent that is waste. I think its a bit silly to call it waste even if we are over-remunerating, which seems possible. On the other hand, outside the NHS Doctors would earn more and I guess there is some justification for your GP earning the same in a year as top footballers earn in a week. You lot can rant on about markets etc, but to call it waste seems a bit bizarre. Doctors have saved the life of two of my close family (on the NHS), but footballers have also given me some good moments and hopefully will again tonight , but I know which I choose.
    Really, you people do need to get out more and visit places without proper public services. Yes its not perfect here and now, but it is the case that (to quote one of your own) “you’ve never had it so good”. These arguments are about detail, if you got out and around more, you’d know that and stop whinging so much.

  • Graeme Pirie

    Just as well your 2 family members weren’t being looked after in Rose Gibbs’ hospital – you know the one that killed 90 patients with C.Diff. Despite previous warnings, they recruited her and paid her 150K salary and 400K payoff.
    Yep – money well spent. 20B on the NHS computer so far, that’s a bargain as well.
    I’ve heard no-one here suggest that money should not go to front line services, but yes I’ve seen plenty examples of money being wasted on faceless beaurocrats who do us no good at all.
    With the amount of money that’s taken in tax – 500+ Billion this year, we should have PERFECT services – but of course that’s on the assumption that money fixes everything. It doesn’t.

  • Steve Robson

    How do you know what £500billion should buy. Its just a number. Its like the 10% saving, why not 1% or 20% or 0% or 10% more. Thesae figures are just plucked out of the air.
    And its so easy to point at individual problem areas. Of course, sometimes best value is not achieved, just like it hasn’t been so far by the private sector on T5 or by Northern Rock. People make mistakes in all areas of the economy, except the supporters of the TPA of course who are PERFECT.

  • Graeme Pirie

    No the TPA are not perfect – but then again they’re not responsible for wasting MY money.
    I’ve never heard Brown admitting to ANY mistakes – it’s him that says he’s Mr Perfect Prudence that runs a nice tight ship.
    I’ve got no idea what £500 Billion could buy, it’s an inconcievable amount of money to me.
    However what I DO know is that in 1997, tax receipts were £287B and they’re now £505B.
    I also know that in 1997 more kids could read when they came out of school, less were killed by MRSA and crime was lower (politicians didn’t even have to wear stab vests then!)
    Why don’t you show us an area where all this extra spending has improved in line with the increases?

  • Nick

    Sitting on our arses moaning and stumping up each time council tax is increased is getting us nowhere. Remember the poll tax riots? That tax was soon scrapped. What we now need is council tax riots, hitting every town hall in the country simultaneously. Everyone would be up for it, all we need is someone to organise it. The TPA with their regional contacts would be perfectly placed to do it.