| The future's bright, the future's Rishi on 10:17 - Oct 29 with 1027 views | Dubtractor |
In fairness to Sunak, inflation is (by a long way) the biggest problem facing councils for next year's budget. A 10% addition to all contracted spend is absolutely crippling unless government is prepared to fund it - and we are talking about an enormous cost here, absolutely eyewatering.
That government has been in chaos and councils are still not sure what the government settlement will be for next year is also a huge problem for council planning.
But even if government allows for an 8% budget settlement, which would be a huge figure, that would still leave a council with a £500m budget with a £10m shortfall to fill. That's a simplistic figure as inflation doesn't apply to all spend, but it illustrates the point.
There is a separate question around how much Sunak is responsible for the country's current financial state.
Inflation at 10% (or higher) is beyond a disaster though, and these inflationary costs are then baked into contracts for the duration, and the next years compound interest sees a higher figure inflated etc etc. [Post edited 29 Oct 2022 10:20]
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| The future's bright, the future's Rishi on 11:44 - Oct 29 with 928 views | DJR |
| The future's bright, the future's Rishi on 10:17 - Oct 29 by Dubtractor |
In fairness to Sunak, inflation is (by a long way) the biggest problem facing councils for next year's budget. A 10% addition to all contracted spend is absolutely crippling unless government is prepared to fund it - and we are talking about an enormous cost here, absolutely eyewatering.
That government has been in chaos and councils are still not sure what the government settlement will be for next year is also a huge problem for council planning.
But even if government allows for an 8% budget settlement, which would be a huge figure, that would still leave a council with a £500m budget with a £10m shortfall to fill. That's a simplistic figure as inflation doesn't apply to all spend, but it illustrates the point.
There is a separate question around how much Sunak is responsible for the country's current financial state.
Inflation at 10% (or higher) is beyond a disaster though, and these inflationary costs are then baked into contracts for the duration, and the next years compound interest sees a higher figure inflated etc etc. [Post edited 29 Oct 2022 10:20]
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Coming on top of savage local government cuts, inflation certainly is a problem if funding is not increased, but one they might have been able to overcome but for those cuts.
Sunak's to blame as much as any Tory. He's been an MP since 2015 and a minister since not long after, and he happily joined a party which took joy out of austerity.
But just like Truss, he seems to be saying "nothing to do with me, pal", and knowing the Tories he seems to be getting away with it. |  | | |
| The future's bright, the future's Rishi on 11:51 - Oct 29 with 916 views | Dubtractor |
| The future's bright, the future's Rishi on 11:44 - Oct 29 by DJR |
Coming on top of savage local government cuts, inflation certainly is a problem if funding is not increased, but one they might have been able to overcome but for those cuts.
Sunak's to blame as much as any Tory. He's been an MP since 2015 and a minister since not long after, and he happily joined a party which took joy out of austerity.
But just like Truss, he seems to be saying "nothing to do with me, pal", and knowing the Tories he seems to be getting away with it. |
Don't get me wrong, the problems with wafer thin resilience in the public sector is 100% due to the continued austerity measures since 2010, and Sunak has clearly played some role in that, though Cameron/Osbourne are the main culprits.
Don't mistake my post as a defence of Sunak/the tories, I want them out ASAP, but finding the funding to keep local government finances whole can only be done with the support of some fairly stiff tax increases. This is why that Truss budget was so horribly destructive, and why the markets went into meltdown because of it. | |
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| The future's bright, the future's Rishi on 11:56 - Oct 29 with 898 views | WeWereZombies |
Interesting that Scotland is not referred to in that article. My Council tax has not gone up in the last three years, in fact this year it has decreased thanks to a concession I was not even expecting. Have we got something right as far as efficient spending goes ? Or are we more robust in telling Westminster where to get off to ? |  |
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| The future's bright, the future's Rishi on 12:13 - Oct 29 with 866 views | Swansea_Blue |
| The future's bright, the future's Rishi on 11:51 - Oct 29 by Dubtractor |
Don't get me wrong, the problems with wafer thin resilience in the public sector is 100% due to the continued austerity measures since 2010, and Sunak has clearly played some role in that, though Cameron/Osbourne are the main culprits.
Don't mistake my post as a defence of Sunak/the tories, I want them out ASAP, but finding the funding to keep local government finances whole can only be done with the support of some fairly stiff tax increases. This is why that Truss budget was so horribly destructive, and why the markets went into meltdown because of it. |
They’ll never cut their way out of low growth, it’s a vicious negative circle. Cuts to services results in cuts in jobs and wages results in a lower tax take and spending in the economy, equals doubling down on austerity. Rinse and repeat. It was largely a political choice under Cameron/Osborne; it’ll be interesting to see what economists make of Sunak/Hunt and whether they’re making exactly the same mistakes. |  |
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| The future's bright, the future's Rishi on 12:47 - Oct 29 with 804 views | Guthrum |
| The future's bright, the future's Rishi on 12:13 - Oct 29 by Swansea_Blue |
They’ll never cut their way out of low growth, it’s a vicious negative circle. Cuts to services results in cuts in jobs and wages results in a lower tax take and spending in the economy, equals doubling down on austerity. Rinse and repeat. It was largely a political choice under Cameron/Osborne; it’ll be interesting to see what economists make of Sunak/Hunt and whether they’re making exactly the same mistakes. |
Moreover, cuts give ever-diminishing returns. The more you cut, the less there is to cut further. |  |
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| The future's bright, the future's Rishi on 13:18 - Oct 29 with 760 views | NthQldITFC |
| The future's bright, the future's Rishi on 10:17 - Oct 29 by Dubtractor |
In fairness to Sunak, inflation is (by a long way) the biggest problem facing councils for next year's budget. A 10% addition to all contracted spend is absolutely crippling unless government is prepared to fund it - and we are talking about an enormous cost here, absolutely eyewatering.
That government has been in chaos and councils are still not sure what the government settlement will be for next year is also a huge problem for council planning.
But even if government allows for an 8% budget settlement, which would be a huge figure, that would still leave a council with a £500m budget with a £10m shortfall to fill. That's a simplistic figure as inflation doesn't apply to all spend, but it illustrates the point.
There is a separate question around how much Sunak is responsible for the country's current financial state.
Inflation at 10% (or higher) is beyond a disaster though, and these inflationary costs are then baked into contracts for the duration, and the next years compound interest sees a higher figure inflated etc etc. [Post edited 29 Oct 2022 10:20]
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Fall tax wind.
The filthy oil companies can fund it, the b@st@rds! |  |
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